C
harles Cohen's financial woes are deepening as Fortress Credit Corporation closes in on him for a $187 million personal guaranty. The guaranty was signed to secure a massive mortgage for Cohen Brothers Realty in 2022, but when payments stopped earlier this year, Fortress sued, alleging default. A contentious battle ensued, with Cohen arguing that his team and the lender had agreed to modify the loan via email. However, a New York Supreme Court judge ruled in favor of the lender, stating that no written agreement was ever signed.

    The decision comes with a caveat: Fortress can't collect just yet. The parties must first navigate the $534 million UCC foreclosure initiated by Fortress on the collateral for the loan, which includes various assets such as a design center, hotel, and movie theaters. A court-ordered auction is set for November 8, where the sale of these assets could potentially satisfy some or all of the judgment against Cohen.

    The odds are stacked against Cohen, with most UCC foreclosures drawing few bidders and lenders often winning with a credit bid. However, Fortress has aggressively marketed the auction, which is believed to be the largest UCC foreclosure ever. Even if the sale satisfies Cohen's guaranty, his company, Cohen Brothers Realty, remains liable for the remaining balance of the $534 million debt.