A New York State Supreme Courtroom choose has dominated that Charles Cohen owes creditor Fortress Credit score Corp. $187.25 million if a scheduled public sale of property together with Landmark Theatres doesn’t cowl the $500+ million the New York actual property magnate owes.
The compensation of that 2022 mortgage has been in dispute for a 12 months. The events agreed to a variety of extensions in 2023 however in the end Fortress referred to as the mortgage. It claimed Cohen was in default and sued for an public sale of the underlying collateral properties, which, together with Landmark, embrace a design heart, workplace tower and resort.
The go well with performed out over this previous summer season and Choose Joel M. Cohen in August in the end dominated for Fortress, setting a Nov. 8 public sale date. In an announcement to Deadline then, a rep for Landmark mentioned, “Regardless of the complexities of this business state of affairs, Landmark stays devoted to its enterprise and anticipates a good decision to the continued litigation.”
The mortgage warranty for $187.25 million — plus prices, authorized charges and bills — signed by Cohen is a facet difficulty that Fortress sued to implement. Because the choose wrote, it was meant “to make sure compensation (partially) of a mortgage made to Cohen Realty Enterprises LLC (“CRE”) and associated entities (with CRE, the “Debtors”) within the authentic mixture principal quantity of $533,641,618.”
“Plaintiff movement is granted. Defendant’s cross-motion to dismiss is denied and his counterclaims are dismissed,” he wrote.
The ruling on the warranty doesn’t impression Landmark, and, Deadline hears, will probably be appealed.
The choose had earlier denied Cohen’s requests for a preliminary injunction in addition to a request to maneuver the public sale date later.
The choose initially had given the events time to succeed in an settlement on restructuring the mortgage. It’s all the time attainable the perimeters will settle.
If the public sale does transfer forward, nevertheless, it might be one of many greatest in New York actual property historical past underneath the so-called Uniform Business Code (UCC).
Cohen acquired Landmark, as soon as the crown jewel of indie theater circuits, from Mark Cuban and Todd Wagner in 2018, arguably powerful timing with the exhibition trade hit in swift succession by Covid and Hollywood strikes.
