Santelli update?

[rsy]

Originally Posted by jeff

The paper on the door said (if I recall correctly) Nov 19. Obviously that date has come and gone, but I don't know what the status is, or whether that was a preliminary hearing, something with judgements, etc.

Jeff,

In NJ a landlord of a commercial property can enforce a distraint (a type of landlord's lien) against his tenant's personal property on site for at least a portion of back rent owed. In addition, becasue Santelli was a manufacturer as well, the landlord may also be able to use a Loft Act lien which is a little known, but very powerful lien that can allow a landlord to jump ahead of banks and other perfected lien holders.

If that is what Santelli is up against, a Chapter 11 may be their only chance, and probably not much of one at this late date.

-r

[HDG]

Originally Posted by rsy

Jeff,

In NJ a landlord of a commercial property can enforce a distraint (a type of landlord's lien) against his tenant's personal property on site for at least a portion of back rent owed. In addition, becasue Santelli was a manufacturer as well, the landlord may also be able to use a Loft Act lien which is a little known, but very powerful lien that can allow a landlord to jump ahead of banks and other perfected lien holders.

If that is what Santelli is up against, a Chapter 11 may be their only chance, and probably not much of one at this late date.

-r

Let's hope Santelli's lawyers (or the manufacturing equipment lessors and other creditors) were sharp enough to request a lien waiver from the landlord (and that the landlord was willing to accede).