June 13, 2003
Trump Ordered to Sell His Share of G.M. Building to Insurance Firm
By THE ASSOCIATED PRESS
A Manhattan judge yesterday ordered Donald J. Trump to sell his 50 percent share of the $1 billion General Motors Building in Manhattan to the bankrupt Indiana-based insurance and financial services company Conseco Inc.
Justice Karla Moscowitz of State Supreme Court affirmed the May 28 ruling of an arbitration panel and rejected a request by Mr. Trump's lawyer to throw it out. The judge said she lacked the legal authority to void the panel's 2-1 decision because the panel had not shown a disregard for the law.
The panel ruled that Trump should relinquish his stake in the 50-story skyscraper, which is at Fifth Avenue and 59th Street across from Central Park, for $15.6 million. The panel said Trump had not followed through on his earlier agreement to buy Conseco's share.
Conseco and Mr. Trump bought the building jointly in 1998 for $878 million. Conseco put up $211 million, and Mr. Trump paid $11 million.
Conseco's real estate expert testified that the G.M. Building was now worth about $1.05 billion. The $15.6 million fixed by the arbitrators represents Mr. Trump's proportional share, accounting for the building's increased value.
Copyright 2003 The New York Times Company