The Receiver of a real estate development project brought a motion for an Approval and Vesting Order to sell the project's assets, disclaim the majority of pre-construction unit purchase agreements, and implement a deposit return protocol.
The primary secured creditor supported the motion, while the debtors and several freehold unit purchasers opposed it, citing the loss of uninsured deposit monies and the homes they contracted for.
The court approved the transaction, finding the sales process met the Soundair principles and that the Forjay factors supported disclaiming the unassumed agreements, as the project was significantly underwater and the secured creditor faced a substantial shortfall.
