Chaim Lefkowitz files $14M bankruptcy to restructure 3 Brooklyn assets

Chaim Lefkowitz as principal of TCSU Manager Corp., the managing member of the three entities that own the properties at 141 Troutman Street, 243 Suydam Street and 555-557 Union Street, filed the three related petitions for bankruptcy protection in the Eastern District of New York. FILING

The lender in January 2022 filed to foreclose on the $14 million secured by the properties.

Chaim became a principal after acquiring an interest in mid-2019 from his son Lipa Lefkowitz, according to the bankruptcy filing. Lefkowitz states he filed the petition because rents have improved and monthly rent collection has risen to $78,000 from $45,000 in early 2021. A receiver, Arthur Greig, was appointed in December 2021. “Given the pending foreclosure, the debtors hereby seek protection under Chapter 11 in an attempt to renew negotiations with the Lender aimed at achieving a restructuring based upon either a principal pay-down and new mortgage terms, or third-party refinancing for an agreed amount.”

In September, the lender filed a petition to have the court appoint a receiver, and the court did appoint one. In that petition,
the lender as plaintiff alleged the rental income may not be reported accurately. The filing was not a foreclosure filing, but the lender asserted it may bring a foreclosure action. It later amended the complaint in January to seek to foreclose on the loan.

According to the lender petition from September 2021, “Plaintiff has reason to believe that Defendants’ financial reporting is incomplete or inaccurate and has demanded access to the Mortgaged Property for purposes of inspection. Defendants have ignored Plaintiff’s demand. As a result, Plaintiff does not know how much rent Defendants are collecting on the Mortgaged Property. To the extent that Defendants are collecting rents in excess of the amounts set forth in their monthly financial reporting to Plaintiff, Plaintiff does not know how such rents are being used or whether Defendants are adequately managing, insuring and maintaining the Mortgaged Property.”

Court filings are the positions of one party and are not necessarily accurate or complete.