A New York state appellate court on Thursday rejected Atlas Apartment Holding’s bid to unwind the sale of a holding company it used as collateral after it defaulted on a $71 million real estate loan from financial firm Macquarie, ruling that the move was not supported by the state’s commercial law.

The decision, from the First Department of the New York Supreme Court’s Appellate Division, reversed a lower court’s decision last year, which allowed Atlas to proceed with claims seeking to invalidate KKR & Co.’s nearly $77 million purchase of the company at auction after Atlas had defaulted on the loan.