On May 29, 2020, The Washington Business Journal published an article about a recent motion filed by an affiliate of JBG Smith Properties (NYSE: JBGS) opposing Parking Management Inc,’s (PMI) usage of parking fees generated from its properties to retain a financial adviser as part of its Chapter 11 bankruptcy restructuring.
JBG Smith alleges that PMI violated provisions of a 10+ year old agreement that required PMI to keep the fees it collects from JBG facilities separate from fees it collects from other properties – and that they should not make those funds available to other creditors. On May 13, the bankruptcy court ordered PMI to honor the terms of that agreement.
Shulman Rogers’ Bankruptcy, Restructuring and Creditors’ Rights Practice Group Chairman, Michael Lichtenstein, represents PMI and said, in response to the suit, that JBG Smith has not proven that the money PMI wants to use for a retainer comes from funds generated from JBG Smith properties. He further explained that PMI has nearly $5 million in various bank accounts, and even if it was JBG Smith-generated money, setting aside $50,000 to retain JW Infinity “will have no impact on JBG Smith or the rights it asserts, if even correct, which the Debtor disputes.”
To read the full Washington Business Journal article, click here.
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