$18M bankruptcy filed in Flushing, $2M in Brooklyn, both to halt auctions

Two unrelated petitioners in New York filed for bankruptcy to hold off separate foreclosure auctions, one related to a defaulted $18 million loan secured by a 23-unit condominium in Flushing, and another for a $2 million loan secured by two Brooklyn walkup buildings.

In the larger, Jinwu Yu filed a Chapter 11 petition in the Eastern District of New York to block the foreclosure auction scheduled for today, May 26, 2023, at the Queens County Supreme Court, to sell the 23-unit condominium building at 142-28 38th Avenue in Flushing. The building also includes three commercial units and additional parking units.
Ai Guang Chen, as managing member of SH 168 LLC, signed for the $18 million loan that S3 Capital originally provided in January 2019. One year later, in January 2020, S3 Capital sold the loan to BK 38th Lender LLC, an entity with unknown ownership which is in care of the law firm Wachtel Missry.

That entity filed a pre-foreclosure action (725426/2020) in December 2020. The approximate amount of the judgment is $28.2 million. The owner is filing bankruptcy to halt a foreclosure sale set for today, May 26, 2023, by a judge’s order issued on April 27, 2023.

Bankruptcy LINK

Direct link to the property’s ACRIS page and link to DOB NOW portal.

In the second case, for $2 million, Joel Braun on behalf of the owner entity Milford Ave Holdings LLC filed a Chapter 7 bankruptcy, which seeks the liquidation of the assets, which are two properties in Brooklyn. The properties are 327 Milford Street and 418 New Jersey Avenue.
A foreclosure auction was set for May, 25, 2023, following a ruling on May 23, 2023 by the judge in the state foreclosure case (512024/2021)  denying a motion to block the auction.

Correction: A prior version of this post misspelled the surname of Jinwu Yu.