Navillus Receives Approval to Exit Bankruptcy

Donal O’Sullivan, founder and CEO of Navillus

NEW YORK CITY—Navillus was granted approval to exit Chapter 11 bankruptcy protection. The construction company reached a settlement with union benefit funds and trustees in August. This was approved by Judge Sean H. Lane on Thursday. The construction company has agreed to pay $25.7 million in a single payment by the end of the month to the union parties, according to the attorney representing the funds, Thomas Kennedy of Cohen, Weiss & Simon.

In 2014, the union parties filed a lawsuit. Last year in September, the chief judge in the US District Court for the Southern District of New York, Colleen McMahon, found that the company had created non-union “alter ego” companies, ACS, TSC and HDK to avoid union obligations. She ordered Navillus to pay $76 million to the plaintiffs. As a result, Navillus filed for bankruptcy.