Real estate firm's bankruptcy case thrown out of bankruptcy court
A giant real estate company was recently ordered to quickly exit bankruptcy because it was using the process to keep a shareholder from taking it over.
Pitcairn Property Holdings, which manages or owns roughly $800 million worth of real estate, was thrown out of court by its bankruptcy judge just a few days after it filed for Chapter 11 protection.
According to a Reuters report, a Philadelphia-based investor may be able to name members of its board of directors grew too real, and this is what caused Pitcairn to seek bankruptcy. If the company loses a court case in Delaware later this month, Blum would be able to appoint a controlling number of board seats.
Eric Blum, who heads both PPH Investments and ELB Capital Management, claims he now has this power because Pitcairn didn't make a scheduled dividend payment of $50 million worth of shares, the report said.
A Philadelphia Inquirer report said that judges typically throw bankruptcy cases out of court when a debtor files for reasons other than to begin a reorganization plan.
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