Courts roundup: Two bankruptcies totaling $6.7M

Two property owners filed petitions for bankruptcy yesterday, each to halt looming foreclosure auctions which together totaled $6.7 million.

In the larger, the entity Bergen Development LLC, with loan signatory Mylene Leggett, filed a chapter 7 bankruptcy petition June 22, 2023, the same day an auction was scheduled to sell the vacant parcel 820 Bergen Street in Crown Heights, Brooklyn.

The total lien according to the 2017 foreclosure action records 500875/2017 was $3.59 million. Seth Weissman’s Urban Standard Capital bought the debt in May 2019.
According to the foreclosure action documents, “Pursuant to the Amended Judgment of Foreclosure and Sale (“Judgment”) signed and dated October 21, 2020 and entered on October 28, 2020 in the above entitled action, I, the undersigned Referee will sell at public auction at the Kings County Supreme Court, located at 360 Adams Street, Room 224, Brooklyn, New York 11201 on June 22, 2023 at 2:30 P.M., premises known as 820 Bergen Street, Brooklyn, NY and described in Schedule “A” annexed hereto.”

Bankruptcy LINK

In the second case, Anderson Inniss through the entity Amba Management Corp., filed a chapter 11 bankruptcy to block an auction set for today for the 6,650-square-foot industrial building at 92-50 150th Street in Jamaica, Queens. Alex Ohebshalom of Empire Management bought the debt with an original principal of $1.5 million in August 2020.

In July 2019, the prior lenders filed to foreclose on the property 712735/2019, which ultimately led to the announced sale.

The amount due as of August 2022 per the referee’s report was $3,153,482.
Bankruptcy LINK