Lender Entitled to Appointment of Receiver—Court Excluded the Right to Collect Certain License Fees—Lender Was Under No Obligation to “Accept or Even Consider a Restructuring or Other Settlement Plan”
Owners of a commercial property moved for an order granting leave to renew and reargue a court’s “ex-parte order appointing a temporary receiver” and “upon renewal and reargument, vacating or modifying that order.” A plaintiff lender had commenced a foreclosure action. Prior to the execution of the subject mortgage and note, the owner had entered into a lease with “A” for “the operation of a film and television production studio.” “A” then entered into “operating agreement” with “B”, pursuant to which “B” was “provided access to the facilities to produce” a daytime television drama. “B” had agreed to make weekly payments to “A” of $127,000.00. “A” and “B” had also agreed that “A”‘s lease and “B”‘s operating agreement were “subordinate to the mortgage.” “B” also “agreed to attorn to the lender in the event of foreclosure.” Following the cancellation of the drama, “B” ceased making payments to “A.” “A” then entered into a license agreement with “C”, whereby “A” granted a license to “C” to use portions of the facilities and “C” agreed to pay “A” $642,000 in installments.
