Lev Leviev (left) and the former New York Times Building
A private equity firm that helped fund the $525 million purchase by Lev
Leviev’s AFI USA of the former New York Times Building in 2007 is
accusing the buyer of scheming to wipe out the lender’s $79 million
mezzanine position. The mezzanine lender, Stamford-based Five Mile Capital Partners,
charged in a 30-page breach of contract lawsuit that AI Holdings (USA),
a subsidiary of AFI USA, is overstating a loss in value of the building
to trigger a technical default that would permit the senior lender,
Banco Inbursa of Mexico, to foreclose on the property. The property value was marked down from $690 million following the
purchase to $315 million as of December 2008, the filing says, creating
the event of default. More
