NEW YORK- NorthStar Capital, the majority owner of Ian Schrager Hotels, filed a lawsuit claiming Vornado Realty Trust improperly acquired $75 million of its debt, a position that gives Vornado “onerous control of the company.
Closely held NorthStar, which has about $2.5 billion in property investments, alleges Vornado used access to “highly sensitive confidential information in connection with proposed transactions between the two companies to learn of the debt. Vornado, the largest office property owner in New York, completed the purchase of the debt from Credit Suisse First Boston this week, said Edward Scheetz, a NorthStar principal.
Vornado could, NorthStar claims, keep it from doing things like obtaining financing or making changes to its business plan. The suit was filed yesterday in New York State Supreme Court.
Much of Vornados interest focused working out an agreement to buy Ian Schrager Hotels, NorthStar said. A spokeswoman for Schrager wasnt immediately available for comment. NorthStar was formed in 1997 by former Goldman Sachs partner David Hamamoto and Edward Scheetz, a former executive in the real estate unit of Leon Blacks Apollo Advisors.
While at Goldman, Hamamoto worked beside Michael Fascitelli, who was head of Goldmans real estate investment banking department but is now president of Saddle Brook, New Jersey-based Vornado. (9/20/00)
