Bankruptcy Judge Scuttles Plan to Sell Martin Cadillac

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The Newark US Bankruptcy Court Judge Rosemary Gambardella rejected a plan to sell the Martin Cadillac dealership in Eaglewood Cliffs to a company headed by Jonathan Sobel, once a managing partner at Goldman Sachs. The selling price was to have been $2.25 million. Instead, the judge ordered a bankruptcy trustee to oversee the finances of the dealership.

The attorney for Martin Cadillac, Gregory S. Kinoian, confirmed that the judge disapproved the sale because of ‘unresolved issues’ with the main creditor, General Motors. Judge Gambardella expects the bankruptcy trustee to recommend to her whether to lift the blockage to the sale. General Motors, Martin Cadillac’s biggest creditor, made its own bid to buy over the ailing dealership but its bid was lower than that of DTF Holdings LLC headed by Sobel. When Sobel, who was the chief risk officer at Goldman Sach’s investment management division up to 2008, made his bid, General Motors complained that the sale would not sufficiently repay them what they were owed.

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