The city of Columbus’ motion to dismiss Paxe Latitude’s bankruptcy filing has been denied by a federal judge in New Jersey.

COLUMBUS, Ohio – The owners of an east side apartment complex in Columbus are continuing bankruptcy filing after appearing in court on Friday.

City of Columbus petition to dismiss the bankruptcy case of Paxe Latitude was dismissed by a federal judge in New Jersey.

In a motion, city officials asked the court to reject the application, arguing that it was made in bad faith and was done in order to avoid fines and the appointment of a receiver to take possession of the property. As the case continues, the city has petitioned the court to allow the transfer to a remediation team to continue maintenance, code violations and asbestos contamination at the complex.

City Attorney Zach Klein released the following statement:

“We entered the New Jersey bankruptcy proceedings because we wanted a seat at the table to fight for the tenants who deserve compensation for the years of mismanagement at Latitude Five25. Our commitment to our tenants has not diminished and we remain committed to each and every one of them. Our position is clear: we need real money and a concrete plan for the tenants and the future of the towers, and we will work with the owners and the court to make it happen. We will be meeting with the owners’ representatives to clarify these details and remain hopeful of a final settlement that balances our priorities and benefits the residents who continue to suffer as a result of the landlord’s gross negligence.”

Last weeka judge gave the owners one week to prove they have the funds needed to repair the towers or their bankruptcy filing could be dismissed.

Latitude Five25 was evacuated last Christmas when some pipes burst due to freezing temperatures, causing electrical damage.

The city condemned the complex after it was found that the buildings lacked potable water, heat and a functioning fire suppression system. In addition, only one of the four elevators is working.

On Feb. 16, the city announced that Paxe Latitude had been fined more than $4 million for violating provisions of a court order from January. The fines are due to legal disputes related to dangerous and unsanitary living conditions at the complex.

RELATED: The owners of Latitude Five25 were fined $4.3 million for contempt

Four days later, on February 20, the owners filed for Chapter 11 relief in New Jersey.

Paxe Latitude issued a statement Friday saying they have proven to the bankruptcy court that they have a plan and the necessary funding to take immediate action.

The full statement is below:

“Paxe Latitude LP is committed to working with the court system, the City of Columbus and the community to resolve this issue and remedy the situation. Today we proved to the bankruptcy court that we have both a plan and the necessary funding to take immediate action. We know that displaced residents and their families continue to be impacted, and we will do everything we can to address the community’s concerns. We plan to take all measures to restore the Latitude Five25 property and support the tenants.”

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