For mega developer Kent Swig, money should be no obstacle, right? The New York business tycoon has purchased or developed more than 4 million square feet of commercial office space and an astonishing 1.5 million square feet of residential space. These are pretty hefty projects and purchases for any normal person but truth be told, not for Kent Swig.
Swig is a staple in the New York business world, and well-respected he certainly is. However, that all may change if he holds fast to what he claims will be a personal bankruptcy file on his behalf in the near future. His problem stems from an earlier default on a $21.15 million personal loan he had taken out to finance Sheffield57, one of his many projects. Square Mile Capital sued him for this, leaving him confused, discouraged, and if it were me, probably running in the opposite direction.
In an affidavit filed on Sept. 15th, Swig attempted to put his foot down and stand his, what is likely now considered to be, not so common ground.
“I do not have access to $28 million in cash or liquid assets, and if the judgment is enforced against me at this time, I will likely have to file for personal bankruptcy protection,” he said. “This will entail severe financial consequences not only for me, but for my family, my business and my employees,” he added.
Ok, here’s the thing — the man has plenty of experience in the business world dealing with top-notch, above the norm projects, services, and New York society in general. So how is it that he makes a mistake like this, and does so on a $21.15 million personal loan no less? It just doesn’t add up. You would think that by now, he’d be fully aware of how to play the gambling game of business ventures. But apparently Swig needs to brush up on the rules and concepts again. It’s probably been a while since his last course in finance.
And this isn’t his first financial faux pas either. The mogul also faces litigation on a $5 million credit line form Citibank, a $4.75 million note from Signature Bank, and a $50 million judgment from Lehman Brothers for mezzanine loans. With all of this combined, Swig would be one of the biggest developers in recent history to file for personal bankruptcy. This without fail brings a new meaning to the expression “laughing all the way to the bank.” Except for this time, the roles have been reversed and it’s not Swig. Better brush up on those finance tips and tricks.