Bankruptcy Judge Martin Glenn

 

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Geltzer was appointed trustee over debtor Kim’s Chapter 7 bankruptcy, and that of his company Carolle Kim Realty Inc. (CKR) whose assets included a Manhattan apartment building (the Property) sold to 1204 Broadway NYC LLC. In addition to occupying an apartment in the Property after sale, Kim forced 1204 Broadway to pay fines after reporting code violations, caused by his own vandalism, to New York City’s housing agency. After the parties failed to reach settlement on 1204 Broadway’s bid seeking $10.8 million in damages, fees and expenses, a $4.55 million default judgment was entered for 1204 Broadway, which moved to reopen Kim’s Chapter 7 case so that $1,031,958 in surplus funds in Kim’s bankruptcy estate—currently held in the court’s registry—could be applied to its judgment. Discussing the factors in In re Atari Inc., the court reopened Kim’s Chapter 7 bankruptcy case pursuant to Bankruptcy Code §350(b), noting that although Kim’s Chapter 7 case has been closed for more than two years, a damages award was only recently ordered in 1204 Broadway’s state supreme court plenary actio seeking damages. However, the court made no determination as to how surplus funds should be distributed.

Bankruptcy Judge Martin Glenn

 

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Geltzer was appointed trustee over debtor Kim’s Chapter 7 bankruptcy, and that of his company Carolle Kim Realty Inc. (CKR) whose assets included a Manhattan apartment building (the Property) sold to 1204 Broadway NYC LLC. In addition to occupying an apartment in the Property after sale, Kim forced 1204 Broadway to pay fines after reporting code violations, caused by his own vandalism, to New York City’s housing agency. After the parties failed to reach settlement on 1204 Broadway’s bid seeking $10.8 million in damages, fees and expenses, a $4.55 million default judgment was entered for 1204 Broadway, which moved to reopen Kim’s Chapter 7 case so that $1,031,958 in surplus funds in Kim’s bankruptcy estate—currently held in the court’s registry—could be applied to its judgment. Discussing the factors in In re Atari Inc., the court reopened Kim’s Chapter 7 bankruptcy case pursuant to Bankruptcy Code §350(b), noting that although Kim’s Chapter 7 case has been closed for more than two years, a damages award was only recently ordered in 1204 Broadway’s state supreme court plenary actio seeking damages. However, the court made no determination as to how surplus funds should be distributed.