A federal bankruptcy court judge has set a March 21 auction for brokerage Grubb & Ellis Co. , following objections from several of its largest creditors seeking to block or postpone the proposed sale to BGC Partners Inc. for $30 million.
Judge Martin Glenn, of the U.S. Bankruptcy Court for the Southern District of New York, ruled Wednesday that the sale would go forward under an amended schedule.
The Santa Anna, Calif., based-company filed for Chapter 11 bankruptcy protection Feb. 20. It has a large presence in Washington region, where it was ranked sixth among theWashington Business Journal’s largest brokerage firms based on 2010 revenue.
Glenn sided with Grubb & Ellis that time is of the essence in the case because the firm has been losing brokers to other firms and that its value will continue to plummet if the bankruptcy proceedings are dragged out through the courts.
As is now proposed, bidders from Grubb & Ellis will have until March 19 to submit preliminary bid documents. Qualified bids must be submitted by 4 p.m. the next day, and an auction will be held on March 21.