Representatives for Forest City Ratner have filed court papers claiming that ongoing litigation and turmoil in the financial markets may jeopardize Atlantic Yards funding, according to an article in today’s Post. The documents were filed on Friday regarding the appeal Develop Don’t Destroy is seeking for the lawsuit challenging the project’s environmental impact review. An affidavit (see copy on jump) submitted by Andrew Silberfein, Forest City Ratner’s executive vice president and director of finance, sheds some light on the complicated web of financing for the more than $4 billion project, which involves having Goldman Sachs serve as the lead underwriter for bonds that will finance the Nets arena’s construction. Silberfein’s affidavit goes on to say:

As the Court surely is aware, the credit markets are in turmoil at this time. Many lenders and bond insurers are facing financial difficulties, and are becoming much more cautious. It is not clear what the financial climate will be in several months, when the arena bond financing is made available to the public…there is a serious question as to whether, given the current state of the debt market, the underwriters will be able to proceed with the financing for the arena while the appeal is pending before this Court.

In response, an attorney for Develop Don’t Destroy said would-be financial backers know “how much of a risk” AY is.
Court Trouble [NY Post]
Anti-AY Lawsuits: And Then There Was One [Brownstoner]
Rendering from AtlanticYards.com.