Despite what you may have heard, Real Housewives of New York star Sonja Morgan maintains that she is not losing her Upper East Side townhouse. The reality star took to her blog this week to respond to the rumors that, after filing for bankruptcy, she is being forced to give up the tony home — which fans will recognize from the Bravo reality show.
As you may remember, Sonja was pushed into filing Chapter 11 after she was successfully sued by Hannibal Pictures over a movie deal she’d made with the company. After going into business, she was unable to raise enough money to move the film — which was attached to John Travolta — forward. The $7 million judgment was out of Sonja’s financial reach, and she had to file for bankruptcy. But not all is as it seems, she says.
“Lady Morgan's house is not crumbling down,” Sonja insists in the blog. “Being in a Chapter 11 doesn't mean that I can’t pay my bills or spent money that I don't have. Chapter 11 is a restructuring of your assets — not a Chapter 7 or a liquidation.”
The RHoNY star also takes a moment to explain how her she ended up in this position. “When I was in the movie business I gave hundreds of people jobs, and some at very high salaries. I ran the production business out of my townhouse with many full-time employees. When one movie deal memo went sour, I got this judgment against me and filed the Chapter 11 to protect and restructure my assets to have time to decide out how to pay this $7 million judgment for a $15 million dollar film that Sonja Productions LLC offered to partially raise money for. It's very unfortunate, but it's a risky business.”
And despite the large sum of money she’s being asked to pony up, Sonja is not planning to give up her home — though she is trying to unload her house in France. “I am selling my house in France and keeping my daughter in her childhood home in New York,” she reveals.
Good for Sonja for speaking up for herself! Dealing with something like Chapter 11 can be difficult, but she seems to be handling things with aplomb.
What do you think of Sonja’s response? Tell us in the comments below.