Thursday, February 4, 2010


It seems as if the rapper is eager to build a hotel in his home state of New York.

He recently filed a lawsuit against Highland Capital Management for failing to deliver on a loan agreement.

According to Businessweek:

Shawn Carter, the rap music artist and Rocawear clothing business founder known as Jay-Z, sued the investment firm Highland Capital Management LP in a dispute over loan guarantees.

Carter, in his complaint filed yesterday in federal court in New York, claims Highland and co-defendant NexBank SSB are attempting to “bleed” from him funds in excess of those he and two other men pledged to pay when they guaranteed the non- principal obligations of a company planning to build a hotel in Manhattan’s west side neighborhood of Chelsea.

Highland Capital, based in Dallas, was founded by James Dondero and Mark Okada in 1993. It oversees about $25 billion in assets, chiefly in credit markets. NexBank is based in the same city.

Highland and NexBank acted in bad faith when they declined to clear Carter and his fellow guarantors of their obligations after receiving a deed in lieu of foreclosure on the property, according to the complaint.

The rap star is seeking a declaratory judgment that he has met those obligations. He’s also seeking damages of more than $3.7 million for the additional interest and other costs incurred while still being held liable under the agreements.

Building hotels is the new retirement plan for artist and entertainers within Hollywood.


  1. He was going to name this hotel THE "J" HOTEL!

    Jay-Z sues over New York hotel loan

    The project was to have become the J Hotel
    Jay-Z is suing investment firm Highland Capital Management for $3.7m (£2.3m) over a 2007 loan to help him build a hotel in Manhattan.

    The rapper, real name Shawn Carter, says that, when the value of the land he had bought fell, he tried to give it back to Highland to avoid repossession.

    Mr Carter says the company dragged its heels costing him millions in interest.

    Highland said it would defend itself against the "meritless" claims, saying the loan remained in default.

    The new building was to have been called the J Hotel.

    Mr Carter also claims that Highland improperly diverted funds from a reserve account he had set up to cover any environmental problems.

    "This action arises out of the efforts by defendants to bleed additional funds from the plaintiff," the rapper's lawyers stated in legal documents.

    "Defendants embarked on a bad faith course of conduct."

    Mr Carter is seeking the damages, as well as a declaration allowing the land to be given back to Highland.

  2. Jay-Z is suing a financing firm that he says soaked him for more than a million bucks in a failed hotel deal.

    The "Money Ain't a Thang" rapper, whose real name is Shawn Carter, says his company borrowed $52 million to build a posh hotel in Chelsea, then abandoned it when the economy tanked.

    Highland Capital Management was holding the note and agreed to take over the W. 21st St. property - but took four months to finish the deal.

    Every day of delay cost Beyoncé's hubby $20,000.

    "Mr. Carter's group failed to repay the loan, which remains in default," a Highland spokesman said, adding the suit's claims are meritless.

  3. Jay-Z has filed a lawsuit against an investment company who loaned him $52million to build a hotel in New York City.

    The property, to be called the J Hotel, was due to be built in Manhattan's West Chelsea neighbourhood.

    But building work was put on hold last year following the real-estate crash and other financial troubles.

    According to the lawsuit, Jay-Z, who is one of three guarantors on the loan, then tried to give the money back.

  4. But, the rapper claims, Highland Capital Management failed to expedite the process, costing him thousands in interest as the loan accrued $20,000 a day.

    Jay-Z is seeking $3.7million in damages from the company, reports the Wall Street Journal.

    A spokesperson for Highland Capital Management called the rapper's claims “meritless” and vowed to “vigorously defend itself”.