A federal bankruptcy court judge last week dismissed a second bankruptcy case brought by owners of Port Norfolk’s Neponset Wharf development but declined to rule on a request by the property owner to approve a private sale to a new buyer for $2.5 million.

CPC Ericsson LLC, controlled by Ryan Sillery of City Point Capital, has been trying to redevelop a mixed-use project with 120 residential units and a marina on the waterfront site. The plan won approvals from the city’s Planning Dept. in January 2022, but subsequently ran into financial difficulties that prompted the first bankruptcy filing in 2024.

According to court filings, Judge Janet Bostwick dismissed the most recent case during a Jan. 8 hearing at the McCormack Federal Courthouse in Boston. In doing so, Bostwick agreed with a motion to dismiss filed in December by Bankruptcy Court trustee Justin Kesselman. The ruling came just as CPC Ericsson’s attorney, Gary Cruickshank, had filed a notice to approve a private sale free of any liens to an unrelated company for $2.5 million.

That notice was ruled “moot” by the court and leaves an uncertain future for the project and creditors who are owed millions of dollars, according to court documents.

Cruickshank did not return phone calls from The Reporter. Attorney Gary Hogan, who represents a large main creditor, Unitas Funding of New Jersey, said he was not permitted by his client to speak on the case. Unitas is owed approximately $10.36 million for a loan given in support of the project.

Another creditor, RISE Together LLC, is owed $677,000 and through an attorney, Widmaier Charles, also said it had no comment. RISE had been heavily involved in the project as a general contractor and permitting agent.

Since this was the second filing in a short time, Kesselman had called on Bostwick to prevent the owners from re-filing again.

“The Debtor has received the benefit of the automatic stay for approximately seven months across two successive cases with no material progress towards a plan or sale that would pay creditors,” he wrote. “During that period, the Debtor has increased its liabilities by incurring and not paying real estate taxes to the City of Boston, as well as additional interest on its obligations to its few creditors.

“As a result, in addition to lacking any apparent reorganizational purpose in this case, the Debtor is engaged in unreasonable delay that is prejudicial to its creditors.”

Judge Bostwick declined that request in her dismissal.