Blackstone says RFR owners did not repay $25M Signature promissory note

The Blackstone Group, which bought a portfolio of loans originated by the now shuttered Signature Bank, alleges in a new lawsuit filed yesterday in New York State Supreme Court that a $25 million promissory loan given to RFR Holding principals Aby Rosen and Michael Fuchs, not secured by real property, was in a payment and maturity default.

Case LINK

Court cases represent the position of one party and are not necessarily accurate or complete.

This is at least the fifth case Blackstone Group brought against RFR since April 2024. One of those is a similar action, filed in April 2024, alleging $39 million in unsecured loans, that remains active. The other three are pre-foreclosure actions that also remain active, as do several other pre-foreclosures with other lenders.

According to the complaint, “Defendants are obligors under that certain Term Promissory Note dated December 23, 2021 (the “Note”)… Pursuant to the promissory note, Defendants promised to repay the Loan when it matured in December of 2023, and agreed to reimburse Plaintiff for any costs, fees and expenses,including attorneys’ fees, incurred by Plaintiff in connection with the enforcement of rights and remedies with respect to the Loan. 3. Defendants failed to repay the Loan as required by the terms of the promissory note…. Borrowers failed to pay monthly installments of interest on the outstanding principal amount of the Loan from April 3, 2023 until December 18, 2023 (the “Payment Default”)… As of December 1, 2024, there is due and owing under the terms of the Note no less than $34,714,187.67, which includes unpaid principal in the amount of $25,000,000.00, interest at the Interest Rate from 03/01/23 through 12/01/24 in the amount of $4,541,666.67, default interest at the rate of 12% per annum from 04/01/23 through 12/01/24 in the amount of $5,075,000.00, late fees in the amount of $96,671.01 and other costs, fees and expenses in the amount of $850.00.”