Jay-Z Takes Lender To Court Over Hotel Loan
In the words of the Notorious B.I.G., more money equals more problems, an idea that still holds weight with hip-hop superstar Jay-Z.
According to Reuters, the rapper filed a lawsuit against investment firm, Highland Capital Management LP, in New York this week, claiming they tried to "bleed" $3.7 million from him over a loan to develop a hotel in New York's trendy Chelsea neighborhood.
In court documents, Jay (real name: Sean Carter) says his company bought the property in Aug. 2007, and obtained a $52-million senior loan—as well as a $11.8 million junior loan. However, when real estate market began to decline, Jay's company tried to give the land back to Highland, instead of it foreclosing.
But Jay says the company lagged, causing him to rack up interest and carrying costs, for which he was personally liable.
"This action arises out of the efforts by defendants to bleed additional funds from plaintiff," the complaint said, according to Reuters. "Defendants embarked on a bad faith course of conduct."
Highland, however, calls Jay's claims "meritless" and says they plan "to pursue the obligations owed to Highland's investors by the borrower, Mr. Carter and the other guarantors."
Jay-Z is seeking $3.7 million in damages, and to be allowed to return the property.