SYRACUSE -- Attorneys for both Citigroup and Destiny USA emerged from two hours of closed door meetings with a State Supreme Court Judge Wednesday looking stern and refusing to comment.
Judge John Cherundolo ordered the meeting following Tuesday's hearing on a request by Destiny to force Citigroup to release the remainder of a $155 million dollar construction loan. Citigroup recently cut off funding for the Carousel Mall expansion. That decision has led to a mass walkout by contractors and has brought work on the project to a virtual halt even though it is 90 percent complete.
In open court Tuesday, Citigroup attorney Les Fagen said Destiny was asking the judge to force them to "fund a failure." Citigroup claims Destiny is in default of its loan agreement, the project is a year behind schedule, over budget and claims not one tenant has been lined up for the expanded mall.
Destiny says Citigroup calculations which led to the default declaration are inaccurate and have accused Citigroup of intentionally avoiding its obligations under the construction loan agreement. Spokesman David Aitken also says Destiny has lined up tenants and Citigroup is aware of that. Aitken refused to identify the tenants.
At one point a source said Wednesday's closed door talks involved communications with a "decision maker" with Citigroup in New York City.
Participants refused to comment on whether the Judge has made a decision or whether future meetings are planned.
