$16M bankruptcy on Hunts Point industrial property

A Hunts Point, Bronx, boiler company that describes itself as the largest Black-owned boiler company in the country, filed for bankruptcy this week, citing a $16 million loan secured by 10 parcels of industrial real estate including 1175 Leggett Street in Hunts Point, the Bronx. The company, Easco Boiler Corp. was founded by the now 96-year old Arlington Leon Eastmond, Jr. He ran the company until about 6 or 9 months ago, when at the age of 95, when he stepped down, the petition says.

The map below shows the 10 parcels that are secured by the $16 million loan, according to city records.

The COO of the company, Tyren Eastmond, the grandson of the company founder, said the company was poorly run and now suffering under crushing debt service with no net income and is effectively out of business due to covid. The main asset of the company is real estate, according to the petition.

According to city records, Easco refinanced 10 properties in April 2021, increasing its debt to $16 million provided by the private lender Edgewood Capital Advisors. That lender is threatening to foreclose, according to the petition.

“The debt service on the bridge loan consumed the vast majority of Easco’s cash flow, since all loans were at 12% or higher interest.”

The debt service is approximately $133,000 per month, the petition says. Other creditors including the IRS, the New York State tax department and others, are also threatening to file liens. The real estate is worth $14.3 million, the petition says.

Easco made two bankruptcy filings, one for the company Easco Boiler, and another for the real estate holding company Leggett Real Estate Holdings. Easco has four other real estate holding companies but only Leggett was put into bankruptcy. The $16 million is secured by all five of the holding companies with a total of 10 parcels in Hunts Point. LINK