The bankruptcy case, which delayed one earlier scheduledauction, was dismissed because it had been filed in bad faith,according to a Security and Exchange Commission filing by Vornado,owner of the 3.5-million-sf Merchandise Mart here.

Prime Group's Downtown portfolio includes the 1.35-million-sfOne IBM Plaza at 330 N. Wabash Ave.; 944,556-sf 77 W. Wacker Dr.;874,742-sf 208 S. LaSalle St.; 846,759-sf 33 W. Monroe St.; and770,191-sf 180 N. LaSalle St. It also includes the 1.5-million-sf,$350-million Dearborn Center joint venture development that is morethan 60% pre-leased a year before its scheduled completion. In thesuburbs, Prime Group's holdings include the three-buildingContinental Towers along the Northwest Tollway in RollingMeadows.

Meanwhile, Reschke is suing former suitor Cadim inc. for $150million, alleging the Montreal-based company forced Primestone intobankruptcy through bad-faith negotiations, then teamed with Vornadoby buying 50% of the debt that now is the subject of foreclosureproceedings.