Lehman Brothers Holdings Inc. is seeking $100 million in damages from Goldman Sachs’ Real Estate Opportunities fund, alleging that the fund’s decision to pull out of the deal destroyed the investment opportunity two days before the sale would have closed[1]. Calling the decision “groundless” and “unjustified,” Lehman is hoping to recoup at least some of its losses on the $1.26 billion deal. Both parties are refusing to comment on the suit at this time, but according to the lawsuit Goldman terminated the deal because of a failure on Lehman’s part to satisfy certain conditions of the purchase agreement. Lehman argues that the agreement also stipulated that the seller could extend the closing deadline by 15 days in order to meet these terms and that the withdrawal from the contract is “entirely pretextual and a blatant attempt to avoid…contractual obligations.”
The deal would have allowed Lehman Brothers to unload a 10-property office portfolio and pay back creditors[2]. Lehman has a 78.5 percent partnership stake in the property. Currently, Lehman has made $3 billion from real estate sales since filing a $639 billion bankruptcy in 2008.
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[1] http://online.wsj.com/article/SB10001424052970203388804576615370068530208.html?mod=googlenews_wsj
[2] http://www.huffingtonpost.com/2011/10/07/goldman-sachs-lehmen-sale_n_999727.html
