Rudy Giuliani, who is currently facing financial difficulties, has come to an agreement with his bankruptcy creditors regarding the terms of his case dismissal. As per the agreement, the ex-mayor of New York City will have to pay $400,000 in administrative expenses.
On Wednesday, the announcement about the deal came after Judge Sean Lane dismissed the bankruptcy case that was filed earlier this month. However, even though the former mayor has reached a settlement, he still has to pay $148m to two election workers whom he defamed. Additionally, he must pay administrative fees for the case, which he had previously refused to pay despite it being a legal requirement for dismissal.
Assuming the agreement is approved by the judge, Giuliani will be required to transfer $100,000 to his lawyers. The funds will be held in escrow and allocated towards paying for professional fees and expenses, with the transfer taking place one day after the order is entered.
Giuliani’s New York City apartment or Florida condo will be the source of funds for the remaining fees, and the payment will be made once either of these properties is sold, whichever happens first.
Rudolph Giuliani, the former mayor of New York, has been trying to sell his New York condo for a while now. The said property is valued at around $5.6m, while his Florida condo is worth about $3.5m. In the past, Giuliani’s lawyer had opposed selling both properties, stating that it would lead to Giuliani becoming “homeless.”
Lane instructed the involved parties to submit their perspectives on the most fitting course of action last week. Luckily, an agreement was reached just hours before the submission deadline.
On July 25, the judge expressed in writing that while a dismissal had been ordered, it may not be the best course of action for this particular case. The court and parties involved may have to reconsider dismissal as an option at a later point, as the Debtor may refuse to pay the necessary administrative expenses required by law for dismissal.
Giuliani was able to avoid additional examination of his financial disclosures, which could have included testifying under oath, by accepting this agreement proposed by Lane.
Throughout the seven-month bankruptcy case, Giuliani’s creditors and the judge handling the case had become increasingly frustrated with his lack of transparency regarding his financial situation. Reports indicate that creditors have expressed concern over “deficiencies in his financial reporting and disclosures,” including inconsistencies in payments related to his Florida condo, unauthorized payments to his alleged girlfriend, and his failure to comply with discovery requests. These issues have caused considerable frustration and raised questions about Giuliani’s financial management.
On Wednesday, the agreement was reached, coinciding with the original hearing date for the case against Noelle Dunphy, who had previously been an employee and is now accusing him of sexual assault.
Dunphy had requested the New York Supreme Court to lift the stay on her case and put it back on the active calendar at the earliest possible date, following the dismissal of the bankruptcy case.
In a letter to the judge, Giuliani’s lawyers have requested a postponement of the court date, stating that it is “premature and improper” to lift the bankruptcy stay. This is because Lane has raised doubts about the dismissal being upheld.
