Flushing condo developer files bankruptcy … again

Developer has filed for Chapter 11 three times on Shirokia Tower

TRD New York /
Dec.December 12, 2016 05:15 PM

If at first you don’t succeed, try, try again. And if that doesn’t work, keep declaring bankruptcy. Hong Qin “Sandy” Jiang, the developer of Shirokia Tower in Flushing, just filed for Chapter 11 bankruptcy on the project for the third time in two years.

Jiang filed for bankruptcy on Friday for 142-28 38th Avenue, a 23-unit condo building in Queens, according to documents filed in Brooklyn Federal Court. The developer plans to sell the property and use the profits to pay back its creditors.

This is the third time that Jiang has filed for bankruptcy with the threat of foreclosure looming. The developer first filed for Chapter 11 in late 2014, but Madison Realty Capital TRData LogoTINY temporarily saved the project from foreclosure with a $14 million loan. The developer later refinanced with an $18 million mortgage loan from W Financial and another $2 million mezzanine loan from hotel developer Sam Chang. But in July 2016, Jiang defaulted, causing her to file for Chapter 11 again in August.

“She just can’t stay out of bankruptcy on this property,” said W Financial’s managing partner David Heiden.

During the last bankruptcy proceeding, Jiang claims she acquired enough funds to pay off Chang. Chang, according to Friday’s filing, has maintained that his company can’t be paid until Jiang has also paid back W Financial. The latest bankruptcy filing is aimed at paying off all the developer’s creditors.

In the bankruptcy filing, Jiang states that she’s seen renewed interest in the property and believes selling it may be “the best course of action.”


Related Articles

arrow_forward_ios
Stephen Ross, chairman of Related Companies (Getty)

Stephen Ross to retailers: Brace yourself for bankruptcies

Stephen Ross to retailers: Brace yourself for bankruptcies
Pier 1 CEO Robert Riesbeck (Credit: Joe Raedle/Getty Images)

Cast away: Pier 1 to liquidate assets, shutter business

Cast away: Pier 1 to liquidate assets, shutter business
The Surrey Hotel at 20 East 76th Street and Ben Ashkenazy, of Ashkenazy Acquisition (Credit: Google Maps)

Ashkenazy looks to push hotel into bankruptcy

Ashkenazy looks to push hotel into bankruptcy
A J. Crew storefront in New York (Photo by Rob Kim/Getty Images)

J. Crew files for bankruptcy

J. Crew files for bankruptcy
A J. Crew storefront on Madison Avenue in New York and a Brooks Brothers store in Beverly Hills, California (Credit: Richard Levine/Corbis and FG/Bauer-Griffin/GC Images)

J. Crew nears bankruptcy, Brooks Brothers seeks buyer

J. Crew nears bankruptcy, Brooks Brothers seeks buyer
Brickell City Centre’s CMX theater (Credit: Brickell)

Owner of CMX Cinemas files for bankruptcy, hopes to get help from landlords

Owner of CMX Cinemas files for bankruptcy, hopes to get help from landlords
Neiman Marcus at Hudson Yards in New York and Neiman Marcus CEO Geoffroy van Raemdonck (Credit: Neiman Marcus by Noam Galai/Getty Images; van Raemdonck by JOE SCHILDHORN/Patrick McMullan via Getty Images )

Neiman Marcus investors to challenge bankruptcy deal, call for sale

Neiman Marcus investors to challenge bankruptcy deal, call for sale
J.C. Penney is in advanced talks for bankruptcy financing as it faces financial pressure from the coronavirus pandemic. (Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)

J.C. Penney in talks for $800M+ bankruptcy financing

J.C. Penney in talks for $800M+ bankruptcy financing
arrow_forward_ios

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

Loading...