Churchill Real Estate has filed a lawsuit against Gary Tse of CTW Realty for a $ 20 million foreclosure judgment.
The lawsuit filed with the New York Supreme Court is Churchill’s apparent attempt to counter Tse’s recent attempt to Chapter 11 Shell’s bankruptcy protection, 381 Broadway Realty, which faces foreclosure and $ 23 million in debt, including $ 20 million from Churchill.
In a complaint, Churchill alleges that Tse violated a debt agreement by running his children’s company, Caden, hosting “stormy and loud parties” on Broadway 381 without collecting rent, and drawing a total of $ 5.5 million in loans against building without Churchill’s consent.
“In view of the above, Tse is liable for the entire outstanding value of the debt,” the complaint states.
Leopold declined to comment. Elena McDermott, a lawyer representing 381 Broadway Realty, did not respond to a request for comment. Caden did not return a message from Facebook asking for a comment.
In March, Churchill won a $ 20 million default against T1’s 381 Broadway Realty after a month-long foreclosure proceeding. However, the company was unable to continue the foreclosure process due to the blocking of the pandemic.
Earlier this month, 381 Broadway Realty filed for bankruptcy, leading to an automatic suspension of creditors’ debt collection.
According to the bankruptcy, Tse owes Titan Capital of Westport, Connecticut $ 3 million and Churchill another $ 20 million.
Another property owned by Tse v 55-59 Christ The street in Chinatown was sold in a bankruptcy auction earlier this year. Lam Generation’s Jeffrey Lam bought a 46,000-square-foot building in Chinatown for $ 28.6 million, according to public records.