American Dream Developer Ordered To Repay $389M In Defaulted Debt

BERGEN COUNTY, NJ — A judge ruled that a group of lenders to the American Dream complex can collect at least $389 million in defaulted debt.

On April 10, New York Judge Andrew Borrok granted a summary judgment request to an agent representing the lenders, and directs the agent to "serve judgment" to ensure the borrower repays the loan and all interest charges.

"It is undisputed that payments under promissory notes executed (in 2019) by Ameream LLC (developer of the entertainment and retail complex) in connection with the loan agreement have not been paid when due," Borrok said in the decision.

Ameream was sued in February by California-based SOL-MM III LLC for not paying interest on a $300 million loan that helped finance a portion of the complex where the mall is located, Patch reported.

"The plaintiff met its burden in establishing prima facie entitlement to summary judgment," the judge said in the ruling, "and the motion must be granted."

American Dream spokesperson Jessica Griffin said the referenced case and claim are filed against a single purpose entity, which has no ownership of American Dream.

"The lawsuit does not involve American Dream nor is there any demand made against American Dream," she said.

In March, the owners of the mall were sued by its home city of East Rutherford for allegedly failing to make about $7.5 million in payment in lieu of taxes agreements. The owners were also sued in the fall by a former employee for a purported "toxic" work environment, Patch reported.