ALBANY – The biggest question surrounding the former Kenwood Academy site is what caused the massive fire that destroyed the historic site’s convent.
The second question might be who walks away with the $2 million insurance policy a developer purchased last year when it declared bankruptcy.
Attorneys for both the former developer and the investment group that paid $100,000 for the property at auction last month both believe their client should get the proceeds from the policy, which may end up in litigation.
During a status conference hearing held virtually Tuesday morning before U.S. Bankruptcy Judge Sean H. Lane, the attorneys for both parties made it clear they should be the ones to send a demand notice to the insurer, requesting payment on the policy, which was set to expire five days after the fire started.
Josephy Moldovan, an attorney for firm that purchased the site on March 21, Guild Investment Group, said the group is evaluating its options after the “ totally unexpected casualty event” before moving forward with closing the sale.
“The insurance is a significant amount, a significant issue,” he told Lane. “Not quite significant enough to really enable any kind of real reconstruction on the premises. However, it is a $2 million policy, and we would like to get our hands on that as the loss payee on that policy.”
Attorney Wayne Greenwald, who has been representing Kenwood Commons in its bankruptcy proceedings and other litigation related to the property said his client, Jacob Frydman, believed his company should receive the policy payout. Greenwald added Kenwood Commons may file litigation over the policy.
Moldovan took exception to that, arguing that Kenwood Commons has no income, $1,000 in its bank accounts and is administratively insolvent.
“The law is pretty crystal clear. We are the…
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