Churchill Real Estate has filed a lawsuit against a company tied to CTW Realty’s Gary Tse in order to collect a $20 million foreclosure judgment.
The lawsuit, filed in New York State Supreme Court, is Churchill’s apparent attempt to counter Tse’s recent move to seek Chapter 11 bankruptcy protection for the shell company, 381 Broadway Realty, which faces foreclosure and $23 million in debt, including $20 million from Churchill.
In the complaint, Churchill alleges that Tse has violated the debt agreement by letting his childrens’ business, Caden, host “boisterous and loud parties” at 381 Broadway without collecting rent, and by taking out total $5.5 million loans against the building without Churchill’s consent.
“Given the foregoing, Tse is liable for the full unpaid value of the debt,” the complaint states.
Leopold declined to comment. Elena McDermott, the attorney representing 381 Broadway