Judge denies Trump's plea to freeze $1.76B.

A Manhattan Supreme Court justice has blocked Donald Trump's attempt to tie up proceeds from the record $1.76 billion sale of Riverside South land.

On August 16, Supreme Court Justice Herman Cahn issued a stay blocking a $1 billion "attachment" Trump tried to place on the proceeds of the sale until a September 1st hearing.

While Trump already claimed in a federal lawsuit that the sale should have yielded more than $1.76 billion, papers filed by the lawyers for his general partners contend that Trump is trying to avoid the terms of his 1994 partnership deal and pressure the partners to cash Trump out before he is entitled.

After a motion to dismiss Trump's suit was filed in federal court, Trump commenced a new action in New York State Supreme Court, seeking to "attach" the proceeds of the sale to block their reinvestment. The motion for attachment, which he filed without notification to the genera! partners, did not try to stop the sale.

The papers filed with the Court assert that Trump, a minority limited partner, was using the $1 billion attachment to try to pressure the general partners into capitulating to his demand for an immediate cash-out.

Trump originally filed a federal lawsuit against six entities called Hudson Waterfront Corp. and Hudson Waterfront Iv Corps., as well as Hong Kong-based investors in those corporations. The $1.76 billion sale of the properties to an investment consortium headed by Extell Development Company and The Carlyle Group represented the highest dollar value real estate transaction in city history. According to various sources, Trump held a 30% stake in the property.

Justice Cahn ordered Trump to show cause in a subsequent hearing why the attachment should not be permanently vacated.

The sale of Riverside South is scheduled to close next month.