Monroe Capital sued HFZ, Ziel Feldman, seeking repayment of loan, then suit dismissed

By Adam Pincus

UPDATED Oct. 20, 2020 at 12:30 p.m.: The Chicago-based opportunistic investment firm Monroe Capital asked a New York State Supreme Court judge on August 31 to find that HFZ Capital Group and Ziel Feldman, his wife and a family trust must repay a  loan Monroe says it gave HFZ.

The following day, the judge discontinued the action and the motion was dismissed, then in September the judge ordered the documents sealed.

The court papers filed Friday did not mention a specific development project, and several sources said the loan was related to a series of industrial assets outside of New York City that were scheduled for a December UCC foreclosure auction. However that auction was cancelled because the dispute was resolved according to a source familiar with the situation.

On October 16, the court republished the documents — unsealed — under a new index number, which formed the basis of this article. The republished documents were also subsequently resealed.

Because the documents had been sealed by a state judge and then released in error, PincusCo made an editorial decision to remove the privileged financial information that had been in this article.

The Real Deal reported on Friday that Starwood sued HFZ over the default of a $157 million loan originated for a co-op conversion.