Billionaire Charles Cohen faces dropping his fantastic wines, artworks, mansions, superyachts and Ferraris as he scrambles to promote properties so he pays again loans that went dangerous on soured actual property offers, in line with a report.
Cohen, 73, is being sued by Fortress Funding Group over a $535 million mortgage it made to his property agency, Cohen Realty Enterprises, in 2022.
His collateral included a Manhattan workplace tower, the Le Méridien Dania Seaside lodge in Fort Lauderdale, Fla., and 4 different properties, in line with information from New York State Supreme Court docket.
However Cohen, who has an almost $2 billion web value, additionally personally assured $187.2 million of that mortgage, the Wall Road Journal earlier reported.
That opened the door for Fortress, an funding large partially owned by Abu Dhabi authorities fund Mubadala Capital, to go after him personally when his enterprise defaulted final yr.
Fortress took management of most of his collateral, however stated the worth nonetheless falls wanting what Cohen owes.
So the agency has launched authorized efforts to grab Cohen’s mega-mansions in France’s Provence area and Greenwich, Conn., in line with New York courtroom information.
Fortress has additionally set its sights on Cohen’s 25 luxurious automobiles, together with two Ferraris, and a 220-foot yacht value almost $50 million, which was blocked from leaving an Italian port earlier this month.
The agency has already seized a whole lot of 1000’s of {dollars} value of artwork, decor and fantastic wines from the Château de Chausse – Cohen’s 138-acre house and winery in Provence.
Legal professionals for Cohen and a consultant for Fortress declined to remark.
It wouldn’t be the primary time private ensures have sunk a businessman – famously touchdown Donald Trump close to chapter within the Nineties.
Fortress has argued that Cohen is obstructing the agency from imposing the ensures by transferring possession of belongings to his members of the family, in line with courtroom information.
The true property king moved possession of the yacht caught within the Port of Loano below his spouse’s identify final yr, in line with these information.
Cohen argued these transfers had been performed for property and tax-planning functions. A French courtroom dominated in his favor within the case of the Provence château.
“They [Fortress] keep pecking at us, like a bird would peck at something,” Cohen stated throughout a February deposition. “Enough was never enough.”
Cohen’s agency is countersuing Fortress.
The billionaire stated he has used private ensures earlier than and has by no means had this sort of drawback.
His attorneys have argued that Fortress’ actions – like placing restraints on Cohen’s brokerage accounts and on accounts held by his mom and sister – quantity to harassment.
Cohen can’t withdraw cash from his private accounts with out Fortress’ approval.
Fortress has argued that it subpoenaed Cohen’s members of the family as a result of he transferred private belongings to them.
“Fortress is left with no choice but to begin enforcing its judgment against Cohen’s assets,” the agency stated, in line with courtroom information, noting an obligation to buyers.
Fortress and Cohen’s partnership was nothing new. The funding large had financed lots of Cohen’s real-estate offers within the years earlier than the pandemic.
However Cohen’s portfolio suffered in 2020 as demand for workplace area and film theaters – which make up a major chunk of his properties – plunged.
As different constructing house owners gave properties again to lenders, Cohen held on and agreed to a restructuring plan with Fortress, which included the non-public ensures.
However the market remained in a cussed stoop, forcing the pair to change the 2022 mortgage 4 instances earlier than Cohen’s enterprise defaulted in March 2024.
Cohen stated he had a handshake take care of Fortress for an additional extension, however the agency denied this and the state supreme courtroom and appellate courtroom dominated within the funding group’s favor.
“Defendant’s statements that the parties understood that the December emails were a binding agreement…were self-serving and unsubstantiated,” the appellate courtroom dominated.
Cohen stated he’s now speeding to promote properties so he can elevate money for Fortress.
