The Deal
Sunday, November 22, 
12:53 am

Don't be surprised if NY Crane follows the asbestos playbook

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Could New York Crane and Equipment Corp. topple over into bankruptcy?

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NY Crane is the company at the center of the latest construction site crane accident in Manhattan, as well as one earlier in the spring.

According to an article in The New York Times, prosecutors investigating the crane accident on May 30 at 91st Street in Manhattan have obtained warrants, which allowed them to take documents and other information from NY Crane's Brooklyn office.

"The Manhattan district attorney's office has opened a criminal investigation into a fatal crane accident, focusing on whether part of the crane had been seriously damaged last year and then inappropriately put back into service," said an article in The New York Times Sunday.

Two workers were killed during the crane accident, a disaster that followed the death of seven in another crane freefall at a construction site at 51st Street in Manhattan on March 15. In both case, the cranes belonged to NY Crane.

Lawsuits have been filed against the company since the accidents took place. One woman in Staten Island has sued NY Crane and the City of Manhattan for $25 million after her husband was killed in the March accident. More are likely.

Since filing for bankruptcy protection would stay the lawsuits against the company, it just may be an option NY Crane will have to consider. Examples abound -- most notably, companies with large asbestos litigation exposure -- of corporations who seek Chapter 11 when the legal challenges mount. And for NY Crane, that's certainly the case. - Jamie Mason





Comments

From: Ajlouny,

It's a sad event when a devastating accident such as this one could have been avoided.


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