Updated 11/24/2009 06:03 AM
Citigroup seeks appeal in Destiny USA case
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SYRACUSE, N.Y. -- Citigroup says it will ask for permission from the State Appellate Division to appeal its ruling in the Destiny USA case.
The Appellate Court in Rochester had ruled that, pending the posting of a $20 million bond by Destiny, Citigroup had to make good on its loan advances on the construction of the Carousel Center expansion.
Citigroup says the state's highest court, the Court of Appeals, should review the case because it set a precedent that the bank says has negative implications for all lenders. Destiny claimed the bank had reneged on its loan deal. The bank said it could not be forced to, in its words, fund a failure.
The Appellate judges must give their permission in order for the appeal to be heard. An appeal would add more delay onto the project, stalled since spring.
Destiny USA issued a statement following news of the Citigroup appeal. It says the bank is continuing to deflect its responsibilities.
The developer called on Congressman Dan Maffei to launch a federal investigation into operations by the financial institution.
Destiny also says it will be briefing New York's two U.S. Senators, Charles Schumer and Kirsten Gillibrand, on the status of the project and the actions of Citigroup.