On Januray 14, 2022, Empire Pace (1088 Progress) Ltd., the Progress Project borrower (“Borrower”) served motion materials in connection with its motion returnable January 31, 2022 in support of its request for an Order (“Progress Approval and Vesting Order”) that, among other things:

Confirms and approves the Trustee and Olympia Trust Company discharging the Progress Mortgage in connection with the Sale Transaction upon receipt of the Sorrenti Discharge Payment;
Vests all of the Borrower’s right, title and interest in and to the Purchased Assets described in the agreement of purchase and sale in the Purchaser, free and clear of and from any and all claims; and
Seals certain confidential information concerning the Sale Transaction and the sale process, until further order of the Court.

The Borrower’s motion materials include, among other things, a report to Court from the Trustee in support of the Borrower’s request for the Progress Approval and Vesting Order. The Trustee’s report describes the following matters:

an overview of the Progress Project and the underlying Sorrenti syndicated mortgage loan pursuant to which certain of the Investors loaned money in respect of the Progress Project;
the details of the Progress Sale Transaction;
the details of the marketing process conducted for the Progress Property;
information that supports the Trustee’s recommendation to discharge the Progress Mortgage in connection with the Progress Sale Transaction upon receipt of the Sorrenti Discharge Payment, and to take any other steps necessary to facilitate the closing of the Progress Sale Transaction, in its sole discretion; and
a confidential appendix that includes an unredacted copy of the APS and provides, among other things, a summary of the offers received for the Progress Property, the financial details of the Progress Sale Transaction and the estimated Realized Property available for distribution to the Progress Individual Lenders.

Copies of the materials filed on January 14, 2022, including the Trustee’s Fourth Report, are available below.