3 Banks Force New York's Kalikow into Bankruptcy
Three banks with relatively small claims forced New York real estate developer Peter S. Kalikow to file for bankruptcy on Tuesday.
Apparently fed up with waiting for Mr. Kalikow to resuscitate his ailing real estate investments, European American Bank, National Westminster, and Marine Midland decided not to extend a standstill agreement while the developer negotiated with other lenders, banking sources said.
"We think they lose 10 cents on the dollar - everybody loses 10 cents on the dollar - by going into bankruptcy court," complained one of the other bankers.
Mr. Kalikow said in the petition that the creditors would have had the right "to record their judgments, which would immediately become liens against my property in New York."
European American Bank recently won a court judgment for $26 million, while Marine Midland and NatWest have won claims totaling $15.6 million.
Mr. Kalikow valued his assets at $841.4 million, including investments in various partnerships and corporations. He said his liabilities total $350.2 million.
Other Unsecured Creditors in Petition
Mr. Kalikow's properties include a big office tower on Park Avenue, in which he reputedly has significant equity, and a hotel being built in the financial district, the loan for which banking sources said is up to date.
Mr. Kalikow is also the owner and publisher of the New York Post. He said, however, that neither the buildings nor the newspaper were part of the personal bankruptcy filing.
In addition to European American, NatWest, and Marine, unsecured creditors listed in the petition are Bankers Trust New York Corp., with a claim of $46 million; Manufacturers Hanover Corp., claiming $31.4 million; and Citibank, claiming $26.1 million.