Embattled developer Harry Jeremias put his Chelsea office rehabilitation project at 216 West 18th Street into bankruptcy in order to transfer the 13-story building to a designee of Atlas Capital Group, court records show.

Jeremias’ Harch Group, through its development company 216 West 18 Owner, on Tuesday filed the so-called pre-packaged liquidating Chapter 11 bankruptcy protection plan in Manhattan, but the plan has not yet been approved by the judge.

The court records show the development company owes $74.3 million in principal and interest on a first mortgage and $24.6 million in principal and interest on a mezzanine loan, for the Chelsea property recently appraised at just $62.3 million, the filing shows. [more]

Embattled developer Harry Jeremias is facing a new round of litigation for allegedly defaulting on $48 million in loans from Bank of America, used to purchase and renovate a 13-story office tower at 216 West 18th Street. Jeremias, founder of the Harch Group, allegedly defaulted on the loans after the project encountered months of construction delays, multiple stop-work orders from the Department of Buildings and deteriorating safety conditions at the site, according to documents filed Oct. 22 in New York State Supreme Court. Mortgage Electronic Registration Systems, a firm that services the loan on behalf of Bank of America, is asking for a court-appointed receiver, and warning that the building could lose its existing base of tenants without “competent” supervision of the project. [more]