Michael Stern-owned condo project files for Chapter 11 bankruptcy
Stern’s LLC owns majority interest in Park Slope project
Developer Michael Stern’s JDS Fourth Avenue LLC, which owns a majority interest in a Park Slope, Brooklyn condo project, has filed for Chapter 11 bankruptcy protection in Delaware.
The company has a 51 percent stake in the Park Slope condo project at 613 Baltic Street, according to bankruptcy documents filed Tuesday. That property is the subject of a legal battle between JDS Development and Staten Island-based construction company Tona Construction & Management.
Previously, the construction company alleged that the developer ignored their partnership agreement to build the 43-unit condo building at 613 Baltic Avenue. In doing so, Stern withheld financial information on the project and instead used JDS’ own construction arm at inflated rates, the 2018 lawsuit claims.
The project has since been completed. The lawsuit was moved to bankruptcy court, given the filing.
Now, in the bankruptcy filing, the construction company’s litigation claim is included among the list of creditors who have unsecured claims. Others are FTI Consulting, which has a claim of $178,922, and law firm Kasowitz Benson Torres LLP, with a claim of $309,292.
Though Tona Construction was seeking at least $65.8 million in damages in its lawsuit against the company, the unsecured claim amount is listed as unknown.
Stern declined to comment.