Jay-Z filed a lawsuit in Federal Court in New York claiming that Highland Capital Management is attempting to bleed him over a hotel that was never opened.
Jay-Z is suing Highland and NexBank, claiming the companies deliberately dragged on renegotiations of a $52 million loan, which cost the mogul $20,000 per day.
The rap star originally borrowed the $52 million from Column Financial of Manhattan in 2007, which was to be used to open the proposed trendy, J Hotel.
The loan was later sold to Highland. Due to the economy, plans to build the hotel on West 21st Street were scrapped. Jay-Z claims Highland stalled his efforts to hand over the dead in lieu of foreclosure.
The lawsuit claims that Highland is attempting to “bleed” him of funds in excess of what he guaranteed on the non-principal obligations of the company building the hotel.
Jay-Z seeks a declaratory judgment stating that he has fulfilled his obligations in addition to seeking $3.7 million in damages because of the additional interest and others cost incurred under the agreement.
“Highland believes the claims asserted by Mr. Carter are meritless, and [the company] will vigorously defend itself and intends to pursue the obligations owed to Highland’s investors by the borrower, Mr. Carter and the other guarantors,” Highland said in a statement.