Y. David Scharf Quoted on New Claims against HFZ Capital Group in The Real Deal

Chair and Co-Managing Partner Y. David Scharf was quoted in The Real Deal article entitled, “Lender sues HFZ, Monroe over XI lifeline.” The article discussed new claims against firm client HFZ, one of New York’s most active condo developers during the last 20 years, brought by YH Lex Estates, an entity tied to Israeli citizen Yoav Harlap.

Many years after HFZ secured lending from Monroe Capital, HFZ obtained rescue capital to complete a number of its projects and carved out interests in those projects with its lenders with which to repay its creditors and investors through a creditor trust with an independent trustee and a committee of creditors that account for most of HFZ creditors and investors. Over two years after having structured this deal relating to the XI luxury condo development in Chelsea and the Shore Club Residences in Miami Beach, YH alleged that the deal was fraudulent and part of a scheme to protect HFZ and owner Ziel Feldman’s assets from creditors.

David called YH’s allegations “scurrilous, irresponsible, false, frivolous and incapable of being supported by the facts,” and said that “YH is trying to move ahead of the other HFZ creditors and investors who are part of a creditor’s trust.”

Read the full article here.