Controversial Possible Sale of August Wilson Center & Impact on Unsecured Creditors

Kirk Burkley Comments on the Controversial Possible Sale of August Wilson Center and Its Impact on Unsecured Creditors Bernstein-Burkley, P.C. co-managing partner, Kirk Burkley, recently commented on the controversial $8.85 million deal to sell the August Wilson Center for African American Culture, which has a foreclosure deadline only weeks away.

Legal experts question whether Zappala can thwart mortgage-holder Dollar Bank’s planned Nov. 3 foreclosure.

“Whether or not Zappala has the authority to freeze bank accounts is wholly unrelated to whether or not the foreclosure goes through,” said Kirk Burkley of the Downtown bankruptcy and restructuring firm Bernstein-Burkley.

In the receivership process, the stagehands don’t necessarily rank higher on the priority list of unsecured creditors, Burkley said.

“There is a difference in that the DA believes that what happened with this money was a criminal act,” Burkley said, “and that may be another tool that those people have at their disposal to help them get paid.”

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