In a January 19, 2011 decision by Justice Schweitzer, the court granted the motion by the court appointed permanent receiver of the dissolved corporation to sell the corporation’s real property at a negotiated private sale, pursuant to BCL §1206(b)(2). Although the court had directed the receiver to sell the property at a public auction, the court was persuaded by the receiver’s arguments that a public auction of the property would not attract buyers willing to pay the market price and that the receiver proposed to engage a private broker, who had performed an initial valuation of the property, to handle the sale. The court rejected the argument by one of the corporation’s shareholders who opposed the private sale on the grounds that the law of the case mandated sale only via public auction, finding that the private sale was not contrary to common law or statutory authority, and was in the best interests of the corporation.
Matter of Darvish v Haslacha, Inc.. Sup Ct NY County, January 19, 2011, Schweitzer, J, Index No. 123089/01