CHARLESTON – U.S. Bank National Association has filed a lawsuit against the owners of Crossings Mall for the $13.65 million loan for the mall.
On Sept. 17, 2013, a loan was made to Tara Retail Group in the amount of $13.65 million, according to a complaint filed Oct. 23 in the U.S. District Court for the Southern District of New York. In November 2016, a mechanic’s lien was recorded against the property by Potesta & Associates, according to the suit.
U.S. Bank claims on Jan. 24, William Abruzzino and Rebecca Abruzzino, the owners of Tara Retail Group, filed for Chapter 11 bankruptcy.
The Potesta lien and the bankruptcy filing were defaults under the loan documents and constituted Springing Recourse Events under the guaranty. The lien and the bankruptcy filing triggered the guarantors’ liability under the guaranty for the entire debt, according to the suit.
U.S. Bank claims the Abbruzinos also stopped making the required monthly debt service payments in July 2016 and, as a result, all amounts due and owning under the loan documents have been accelerated and are immediately due and payable.
The Abbruzinos have not repaid the amounts due and owing under the loan documents and the guarantors have not repair the amounts due and owning under the loan documents, according to the suit.
At least $17,264,842.28 is currently due under the loan documents, including the guaranty, according to the suit. The amount beyond $13.65 million is attorneys fees, costs and other expenses from other troubles with the retail group.
U.S. Bank claims the Abruzzinos breached their written guaranty by failing to perform their obligations under the guaranty.
The loan document shows that Rebecca Abruzzino has 99 percent of the investment and William Abruzzino has 1 percent.
In June 2016, the bridge to Crossings Mall was washed out during catastrophic flooding. The mall reopened in July, after a new bridge was finally built.
U.S. District Court for the Southern District of New York case number: 1:17-cv-08148