Suit alleges breach of contract
Attilio Petrocelli’s United Capital Corp is suing the Sahara Group, alleging that they breached a contract by pursuing another deal for the Plaza Hotel. The lawsuit says that Subrata Roy’s Sahara Group fraudulently induced United Capital to enter into a contract, show proof of funds, and place money in escrow, TRD reported. Breach of contract!
Worth Noting: Shahal Khan’s Chimera Group and the Hakim Organization also filed a lawsuit, claiming the contract they signed to acquire the property is also valid. What a mess! While the drama has certainly intensified, Ashkenazy Acquisition and Alwaleed Bin Talal (minority owners) are still in the driver’s seat to close the deal.
Lawyers will continue to bill… This comes on the heels of the Sahara Group granting Bin Talal and Ashkenazy an extension to close on the property. The duo exercised their option to match the $600 million offer, and were initially supposed to close on June 25th.
Why this is happening: The current owners used the offers from United Capital and the Chimera Group to force Bin Talal and Ashkenazy to increase their offer. The Sahara Group seemingly never intended to sell to the other two groups.
Fun Factoid: Donald Trump bought the property in 1988 and later lost it to bankruptcy