Henry Cheng and Vincent Lo ward off court order preventing them from accessing profits from the sale of Manhattan site
Hong Kong tycoons Henry Cheng Kar-shun and Vincent Lo Hong-sui have won the latest volley in a legal battle against New York real estate baron Donald Trump, ahead of a September 1 courtroom showdown that will conclude the matter.
The two local businessmen successfully warded off an attempt by Mr Trump, star of the television show The Apprentice, to tie up US$1 billion of the proceeds from the anticipated sale of 37 hectares of prime waterfront land in midtown Manhattan to the Carlyle Group and Extell Development for US$1.76 billion.
Last month, Mr Trump, who has a 30 per cent interest in the property, filed a lawsuit alleging that it was being sold off at well below market value and accused his erstwhile Hong Kong partners of 'a staggering breach' of fiduciary duty.
That suit was dismissed in a US federal court on Wednesday. On Tuesday, a Manhattan judge in the Supreme Court of New York County issued a stay against an earlier court order blocking Mr Cheng and associates from accessing profits from the deal.
The Tuesday decision by Justice Herman Cahn forestalls the blocking order until a September 1 hearing at which Mr Trump will be given a final chance to justify the action.
'We believe that the stay is a huge setback for Trump and puts him back at square one,' said Jonathan Lerner, an attorney with Skadden, Arps, Slate, Meagher & Flom representing the Hong Kong businessmen.
