Vornado's complaint was filed Tuesday in a New York state court in Manhattan, according to that REIT's Security and Exchange Commission filing, the same day a bankruptcy court in Delaware dismissed Primestone's bankruptcy petition.
Vornado also is asking the New York court to order Reschke to pay any future costs and expenses related to the case.
Primestone originally borrowed $62 million from Vornado at 20% interest. That loan was subordinate to a $40-million loan by Prudential Insurance Co., which Vornado acquired.
Meanwhile, Montreal-based Cadim, which dropped a tender offer for Prime Group's common stock last summer, pad $50 million for a 50% stake in the loan. Cadim and Vornado would ultimately share 7.9 million shares of Prime Group stock, but a foreclosure auction has been postponed.
Although the portfolio includes the 1.5-million-sf Dearborn Center project under construction, Prime Group's portfolio includes One IBM Plaza at 330 N. Wabash Ave. and 33 W. Monroe St., where embattled consultant Andersen has 678,735 sf. That represents more than 5% of the REIT's portfolio, but the $9.8 million in rent is more than 6.5% of its office rental income.
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