Wednesday, March 21, 2012

New Domino project embroiled in lawsuit

This is what happens when, unlike Forest City Ratner, you're not sufficiently creative in finding new financing.

From Crain's New York Business, Domino sugar plans on verge of meltdown:
Relations between the two firms redeveloping the Domino sugar factory site along the Williamsburg, Brooklyn, waterfront began to sour almost from the start, according to a lawsuit filed earlier this month. Now, they are on the verge of a total meltdown that could scuttle the entire project.

The Katan Group, a partner in both Refinery Management and The Refinery—the entities that were created to acquire and develop the Domino site, respectively—has filed a lawsuit against its partner, developer CPC Resources Inc. In it, Katan claims that CPC Resources has been mismanaging the project almost since the very beginning, eight years ago. Katan is seeking to block the sale of the project to its lender, Pacific Coast Capital Partners. The lawsuit alleges “breach of fiduciary duty, breach of contract, breach of the implied covenant of good faith and fair dealing, negligent performance,” according to the court filing. The suit, which was filed March 5, comes on the heels of reports revealing that the owners put all or part of the 11-acre site up for sale.

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