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GMAC Files Suit for WTC Rebuilding Compliance

NEW YORK CITY-The legal battles over the rebuilding of the World Trade Center go on as GMAC Commercial Mortgage files suit to compel the Port Authority and Silverstein Properties to comply with contractual obligations.

By Barbara Jarvie | Updated on September 04, 2003

NEW YORK CITY-GMAC Commercial Mortgage Corp. has filed an action in New York State Court against the Port Authority of New York and New Jersey and the World Trade Center LLCs to compel them to comply with contractual obligations during the rebuilding process of the World Trade Center site. GMAC wants to protect the interests of its certificateholders in the $563 million loan that GMAC made to the World Trade Center LLCs. The Port Authority owns the site, while Larry Silverstein of Silverstein Properties is the leaseholder. Silverstein and the Port Authority are confident that the issue can be resolved.

GMAC states, “The Port Authority and the WTC LLCs have steadfastly failed to comply with those obligations, despite GMAC’s repeated requests. In order to ensure the protection of the certificateholders’ security interest, GMACCM is compelled to take this action.”

The complaint continues. “As reflected in the various public statements of the Port Authority and the World Trade Center LLCs during the past several months, those organizations have committed to the restoration of the World Trade Center, commencing with the planned construction next summer of the Freedom Tower designed by Studio Daniel Libeskind. As a result, the Port Authority and the World Trade Center LLCs each owe various contractual obligations to the certificateholders that will protect the certificateholders’ security interest.”

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