"USIF on Wednesday filed a lawsuit against various Fortress entities and L&L, claiming that the developers violated terms of a mezzanine loan agreement when they transferred control of TSX Broadway to a group of lenders led by Goldman Sachs in 2024. Under the loan agreement, the developers needed prior written consent from USIF before making such a move, according to the lawsuit."
"Failing that, the developers triggered a bad boy guarantee holding the Fortress and L&L entities personally liable for a $520 million loan, plus at least $370 million in interest and an unspecified amount of damages, the complaint alleges. A spokesperson for Fortress said the firm believes the lawsuit is without merit. L&L and Goldman declined to comment. USIF, which pooled funds raised through the cash-for-visas EB-5 program to provide the mezzanine loan, claims that the borrowers have failed to make interest payments since May 2023."
USIF alleges that Fortress-related and L&L entities transferred control of the 46-story TSX Broadway tower to lenders led by Goldman Sachs without obtaining required prior written consent. The complaint contends that the unauthorized transfer activated a bad‑boy guarantee, rendering the defendants personally liable for a $520 million loan, at least $370 million in interest, and additional damages. USIF funded the mezzanine loan using EB-5 capital and says borrowers stopped making interest payments in May 2023. Fortress calls the suit without merit; L&L and Goldman declined to comment. The building was completed in 2024 and includes a hotel, retail, and the Palace Theatre.
Read at therealdeal.com
Unable to calculate read time
Collection
[
|
...
]