Michael Stern, LLC Owner, Files Chapter 11 Bankruptcy
JDS Fourth Avenue LLC from developer Michael Stern, who owns a controlling interest in a condo project in Park Slope, Brooklyn, has filed for Chapter 11 bankruptcy in Delaware.
The company owns a 51 percent stake in the Park Slope condo project at 613 Baltic Street, according to COURT? documents tabled Tuesday. This 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 its partnership agreement to build the 43-unit condominium at 613 Baltic Avenue. In doing so, Stern withheld financial information about the project and instead used JDS’s own construction arm at inflated rates, according to the 2018 lawsuit.
The project has since ended. The lawsuit was transferred to bankruptcy court, considering the filing.
Now, in the bankruptcy filing, the claim of the construction company is among the list of creditors who have unsecured debts. The others are FTI Consulting, which has a claim of $ 178,922 and the law firm Kasowitz Benson Torres LLP, with a claim of $ 309,292.
Although Tona Construction is claiming at least $ 65.8 million in damages in its legal action against the company, the amount of the unsecured claim is listed as unknown.
Stern declined to comment.