Zohran Mamdani's block of sale denied by bankruptcy court judge

Federal judge denies Mamdani's bid to stop Pinnacle bankruptcy sale

New York City’s latest attempt to block a massive bankruptcy sale of rent-subsidized apartments has hit a legal wall.

Just The News reported that U.S. Bankruptcy Court Judge David Jones, based in the Southern District of New York, rejected a motion by Mayor Zohran Mamdani’s administration to intervene in the sale of over 5,000 apartments owned by Pinnacle Group, a major landlord managing around 140 buildings and 9,000 units across the city.

The company, owned by billionaire Joel Wiener, declared bankruptcy in May after defaulting on loans exceeding $560 million and owes the city $12.7 million in fines for housing code violations.

Summit Real Estate Holdings has offered $450 million to purchase dozens of Pinnacle’s properties in Brooklyn, Manhattan, the Bronx, and Queens, with the sale awaiting final court approval.Judge Jones Allows Sale to Proceed.

The issue has sparked heated debate over housing policy and tenant protections in a city already grappling with some of the highest housing costs in the nation.

Mamdani’s heart may be in the right place, but federal courts aren’t swayed by passion or campaign promises. Blocking a bankruptcy sale is a tall order when the law leans heavily toward resolving debts over rewriting social policy.

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The United States Court of Appeals for the Second Circuit appointed David S. Jones as a United States Bankruptcy Judge for the Southern District of New York.

His appointment was announced by Chief Judge Debra Ann Livingston of the Second Circuit Court of Appeals and he assumed his duties on February 19, 2021. Federal bankruptcy judges are appointed to renewable 14-year terms by the U.S. Court of Appeals for the circuit in which the court is located, as specified under 28 U.S.C. § 152.