What will happen with NYMA? After this morning’s hearing in US Bankruptcy Court, there appear to be several possibilities.
Global Preparatory Academies has completed its $1.3 million down payment. An attorney for the firm said his client will have the balance of the bid in 30 days and has every intention of closing by Oct. 31. But Judge Cecelia Morris responded that she was not stopping the foreclosure sale.
The school will be offered in auction (with a minimum bid of $9.5 million) on Sept. 30. If there are no acceptable bids, the foreclosure sale will be held two days later. Global could be one of the bidders. But if it fails to come up with the full purchase price in 30 days, it would lose its deposit.
The New York Times’ article on NYMA stirred interest in the property. The attorney for the school’s unsecured creditors referred to a potential bidder from New Jersey, and asked Judge Morris for more time so that this party, and others, would have a chance to exercise due diligence. “There’s been no real marketing,” the attorney said. “Hilco [the marketing company] has been out there for less than two weeks.”
Judge Morris replied that she had no written request for a delay of the sale. Although the marketing effort has been brief, seven parties have shown interest by submitting non-disclosure agreements.
The people holding the mortgage (Cornwall Improvement LLC) might ask for a postponement of the auction if they thought it would improve their chances of getting their money back.
Anthony Desa, the president of the NYMA Board of Trustees, was delayed in traffic. He arrived late and did not have a chance to speak. Judge Morris scheduled the next hearing for 2 p.m. on Oct. 8.
