A U.S. bankruptcy judge said Thursday that Rudy Giuliani could be headed for a “pyrrhic victory” in a dispute over whether he should sell his $3.5 million Florida condo.
U.S. Bankruptcy Judge Sean Lane said at a court hearing in White Plains, New York, that he would not immediately rule on creditors’ attempt to force Giuliani, who is Republican former President Donald Trump’s ex-lawyer, to list the property for sale, and he encouraged Giuliani and the creditors to work out a compromise.
Lane warned that creditors may escalate their efforts to control Giuliani’s bankruptcy if their current request is denied, describing that as a possible pyrrhic victory in which someone wins a battle but loses a war.
“The debtor may succeed in fending off this motion,
only to be faced with far more draconian requests for relief in the future,” Lane said.
Lane said Giuliani’s creditors committee, composed of people and companies that have sued the former New York mayor, could escalate by asking for more traditional, but more extreme, bankruptcy remedies, like appointing a bankruptcy trustee to take control of Giuliani’s assets or proposing their own plan for liquidating Giuliani’s assets.
