Jay-Z Sues Dallas-Based Highland Capital and NexBank Over Failed Hotel Development
So reports The New York Post, which says one Shawn Corey Carter filed a $3.7 million suit in New York on Wednesday concerning a hotel he was trying to get off the ground in Chelsea. The two defendants are Highland Capital Management and NexBank, both HQ'd here and both of whom Carter says are trying to "bleed" him dry over the loan that was supposed to fund the project.
In short: Jay-Z borrowed the money in '07 from another lender that sold the note to Highland Capital -- and then the economy went boom, taking with it the bucks and the blueprint for the J Hotel. (See what I did there? No? Dang it.) In filings, Jay-Z claims the money men "intentionally dragged out talks to renegotiate his $52 million note so they could reap $20,000 a day in interest and fees." To which Highland Capital says, Nuh-unh.
Get the This Week's Top Stories Newsletter
Every week we collect the latest news, music and arts stories — along with film and food reviews and the best things to do this week — so that you’ll never miss Observer's biggest stories.