Joel R. Glucksman to be Moderator of Princeton Office Park Workshop Panel at the 13th Annual Bankruptcy Bench-Bar Conference
April 4, 2011
Joel R. Glucksman, Chair of the Firm’s Bankruptcy and Creditors’ Rights Group, has been selected to serve as moderator of a panel session entitled “Slumdog Millionaire-Real Estate Tax Treatment (Princeton Office Park and More)“, at the 13th Annual Hon. William H. Gindin Bankruptcy Bench-Bar Conference. The Conference will be held on Friday, May 13, 2011 at the Brunswick Hilton in East Brunswick, New Jersey.
The focus of the panel session will be on the long-established practice under which New Jersey municipalities have sold their overdue real estate tax claims to third party investors. Such tax certificate sales benefit the municipalities by providing them with payment of their taxes without requiring that they acquire title to the lands. Tax certificate buyers have been induced into making these investments by the 18% interest rate that such tax obligations accrue under New Jersey law.
However, last year in In re Princeton Office Park, L.P., 423 B.R. 795 (Bkrtcy. D.N.J. 2010), the court threw this well-functioning system into chaos (and created new law in New Jersey in the process). The ruling essentially held that a bankruptcy judge could unilaterally reduce the 18% interest rate in order to confirm a Chapter 11 bankruptcy plan of reorganization.
Princeton Office Park is now on appeal to the Third Circuit, and a ruling is expected within the next year.
More information can be found on New Jersey Institute for Continuing Legal Education (NJICLE).