NEW YORK (AP) – BGC Partners Inc. said Tuesday that it has received bankruptcy court approval for its acquisition of Grubb & Ellis Co. and plans to complete the buyout shortly.
Last month Grubb & Ellis said that it sought bankruptcy protection as part of a deal to sell most of its assets to BGC, which is the parent of rival commercial real estate services company Newmark Knight Frank.
The deal had required approval from the U.S. Bankruptcy Court for the Southern District of New York as part of Grubb & Ellis' Chapter 11 bankruptcy process.
Grubb & Ellis attempted to restructure its operations a year ago by launching a process aimed at divesting itself of non-core businesses, including NNN Realty Advisors and its Alesco Global Advisors mutual fund operation.
It also sought out new financing sources for its remaining operations, while putting out feelers to sell some or all of its operations. But the company failed to reach a deal that could be done outside of bankruptcy protection.
BGC, which is based in New York, had agreed to provide up to $4.8 million in financing to keep Grubb & Ellis operating while in bankruptcy.
"The addition of Grubb & Ellis will dramatically increase our footprint and expand our business lines," James Kuhn, president of Newmark Knight Frank, said in a statement.
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