Swig warns of bankruptcy if Square Mile moves on judgment

New York /
Sep.September 22, 2009 06:24 PM
alternate text
Kent Swig warns of bankruptcy on Sheffield57

Developer Kent Swig warned that he would file for personal bankruptcy protection if a $28 million judgment on a defaulted loan from Square Mile Capital connected to Sheffield57 was enforced against him, according to court filings obtained by The Real Deal.

“I do not have access to $28 million in cash or liquid assets, and if the judgment is enforced against me at this time, I will likely have to file for personal bankruptcy protection,” Swig said in an affidavit filed Sept. 15. “This will entail severe financial consequences not only for me, but for my family, my business and my employees.”

He added: “This default will likely trigger banks to call in my lines of credit, cutting off the capital flow to my business and effectively triggering its complete collapse.”

Swig would be one of the biggest developers in recent history to file for personal bankruptcy. Swig is president of Swig Equities and one of the most important commercial developers in New York City. Since 2001, Swig has purchased or developed more than 4 million square feet of commercial office space and 1.5 million square feet of residential space. He is also co-owner and co-chair of Terra Holdings, parent of residential brokers Brown Harris Stevens and Halstead Property.

After losing control of Sheffield57 to a foreclosure by Fortress Investment Group and 25 Broad Street to a foreclosure by Lehman Brothers, Swig is in personal jeopardy on several financial fronts.

As previously reported by The Real Deal, he faces litigation on a $5 million credit line from Citibank, a $4.75 million note from Signature Bank and a $50 million judgment from Lehman Brothers for mezzanine loans for his condo project at 25 Broad Street.

Square Mile originally sued Swig in January after he defaulted on a $21.15 million personal loan to help finance the development of Sheffield57, the luxury condominium project near Columbus Circle, where Swig was the managing partner.

Square Mile is expected to go to trial later this year against Swig on a second $18.5 million loan, related to the 25 Broad Street development, in which Swig also allegedly defaulted.

Attorneys for Square Mile were not immediately available for comment.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Douglas Elliman's Scott Durkin and Howard Lorber (Douglas Elliman, iStock)
Elliman says it will cover abortion-related travel
Elliman says it will cover abortion-related travel
Peloton's Barry McCarthy, Hudson Commons (Peleton, Hudson Commons, iStock)
Peloton resorts to sublease at Hudson Commons
Peloton resorts to sublease at Hudson Commons
Gov. Kathy Hochul (Photo by Sasha Maslov)
At REBNY gala, Hochul pledges to “support” real estate
At REBNY gala, Hochul pledges to “support” real estate
Times Square Old Navy at 1516 Broadway (LoopNet, iStock)
Times Square Old Navy to reopen after losing rent fight
Times Square Old Navy to reopen after losing rent fight
From left: Alice Technologies founder and CEO René Morkos; Join CEO Andrew Zukoski (LinkedIn/René Morkos, LinkedIn/ Andrew Zukoski, iStock)
Construction tech startups Alice, Join score new commitments
Construction tech startups Alice, Join score new commitments
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...