ANGLO IRISH Bank was named as a co-defendant in a $500 million lawsuit filed against a property company by the managers of the Apthorp, a landmark residential building in Manhattan that has been home to film star Al Pacino and talk-show host Conan O'Brien.
The lawsuit, which was dropped on Monday, the same day it was filed in the New York State Supreme Court, was taken against Apollo Real Estate Finance Corp, the lending and debt investment vehicle of New York property firm, Apollo Real Estate Advisors.
Anglo last year provided $393 million (€273 million) as the lead financier to property company Mann Realty to buy and renovate the Apthorp and convert it into apartments, while Apollo Real Estate Advisors, provided $135 million in mezzanine finance.
A spokesman for Anglo declined to comment.
The 12-storey Apthorp property, built in 1906 and located on the Upper West Side of Manhattan, has 163 apartments with 14-foot high ceilings, a gated courtyard and an underground garage.
Apthorp's managers had claimed Apollo improperly handled the renovation plan. Apollo wrongly stated that the loan to Apthorp's managers was out of balance, meaning projected expenses didn't match project income, according to the complaint.
The lenders had claimed this month that the loan was out of balance and they demanded $22.7 million, the complaint stated.
The complaint was withdrawn after Apollo agreed to put on hold until January 9th its claim that the loan was in arrears, Steven Schlesinger, an attorney for Apthorp told news wire service Bloomberg.
At the time of the building's acquisition, Tony Campbell, chief executive of Anglo's North American division, said: "Landmark buildings of this quality and this location seldom come to market."
- (Additional reporting Bloomberg)
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