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The court placed the AIRN Liquidation Trust’s adversary proceeding in abeyance as to Josephine Amato, Amato & Associates CPAs Inc. and RTA CPA Inc., pausing the litigation against those three defendants without resolving the claims against them. The abeyance order does not state a reason or alter deadlines for the remaining defendants.
The Trust’s complaint alleges that Amato induced three investors to invest approximately $3 million and that her accounting firms received roughly $150,000 in commissions from NRIA between 2016 and 2021. The Trust seeks avoidance and recovery of transfers, damages, claims disallowance and equitable subordination. The order therefore suspends a discrete recovery track involving alleged investor referrals and commission payments while the broader multi-defendant action continues.
The court authorized the AIRN Liquidation Trustee and Wind-Down Entity Borrowers to draw approximately $30 million under the Grand Credit Facility to repay the Ease Capital mortgage on The Station, a West New York, New Jersey property under contract for sale. The approval order dispenses with the Liquidation Trust Advisory Board’s consent, limits the draw to the Ease payoff amount and requires net sale proceeds to repay the draw first; all objections were withdrawn, resolved or overruled, and the order became immediately effective.
The ruling resolves a contested liquidity and governance issue. The Advisory Board’s objection argued that the refinancing lacked enforceable repayment protections and was unnecessary because the sale was expected to close around August 6, ahead of the existing loan’s September 30 maturity. The Trustee countered that replacing the Ease loan would avoid roughly $29,000 of monthly interest expense without increasing overall debt. The sale-proceeds waterfall gives the Grand facility repayment priority while allowing the estate to capture those savings and remove near-term maturity risk if the sale slips.
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