Rudy Giuliani talks to reporters before the Republican National Convention, on July 16, 2024, in Milwaukee. (AP Photo/Paul Sancya).
Rudy Giuliani's bankruptcy case was officially dismissed after his lawyers agreed to end the case.
Under the order by U.S. Bankruptcy Judge Sean Lane on Friday, Giuliani will have to pay $100,000 into an escrow account to cover part of the estimated professional fees of Global Data Risk, the forensic financial investigator that Official Committee of Unsecured Creditors hired to probe the former NYC mayor's assets throughout the bankruptcy.
The order also prohibited Giuliani from seeking bankruptcy protection again for "one year from the dismissal effective date," the order said.
Giuliani will have to sell either his multi-million dollar Upper East Side apartment in New York or his Florida condo since Global Data Risk would be granted under the agreement "continuing, valid, binding, enforceable, non-avoidable and automatically and properly perfected security interests in and liens" on those properties to cover the remainder of the fees from "whichever sale occurs first" — with a caveat.
"For six (6) months following entry of this Order […], GDR shall have no right and shall take no action to foreclose upon the GDR Liens or otherwise seek to exercise or enforce any rights or remedies against the NYC Apartment or Florida Condo other than receive the proceeds from the sale thereof to satisfy the Stub Professional Fee Amount," the agreement reads. "Upon expiration of the GDR Standstill Period, and until such time GDR's allowed fees and expenses are paid in full, GDR shall have the right to take all actions to foreclose upon, and recover in connection with, the GDR Liens and otherwise seek to exercise or enforce all of its rights and remedies against the NYC Apartment and Florida Condo."
Giuliani will have to keep the properties "in good condition, at least comparable to their current condition," and have "casualty insurance […] in an amount not less than the full replacement value of the Debtor's interest in each property," the agreement added.
The agreement comes two weeks after the judge in the case angrily demanded answers about the former NYC mayor's cash assets and threatened to put him in the witness box "under oath" so he could get those answers and effectuate dismissal.
"There are a lot of things that can happen that your client does not want to happen," Lane told Giuliani's lawyers in court on July 17.
Giuliani filed the case in the U.S. Bankruptcy Court for the Southern District of New York following the $148 million defamation judgment awarded to Ruby Freeman and Shaye Moss in December.
Law&Crime's Matt Naham contributed to this report.
