FUR Winthrop Realty Trust New (delisted)

   By Al Yoon 
 

A New York state appellate court cleared the way Tuesday for a deeply discounted sale of a boom-era mortgage on the JW Marriott Las Vegas Resort & Spa, turning down a request from investors who allege they are victims of a "brazen scheme" to steal from them.

The court upheld an earlier denial of a preliminary injunction that stalled the sale of the $150 million mortgage to Galante Holdings, a junior investor in the project, for less than $85 million.

In its decision, the appeals court said New York Supreme Court Judge Melvin Schweitzer in January properly denied a motion to stop the sale because the investors didn't hold enough of the commercial-mortgage-backed security containing the loan to override a "no action" clause.

The lawsuit against Galante will continue even if the loan sale is consummated. Plaintiffs include Winthrop Realty Trust (FUR) and alternative asset manager Angelo, Gordon & Co.

Write to Al Yoon at albert.yoon@dowjones.com