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Dubai on the Bowery Facing Dubai-Like Debt Problems?

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The Cooper Square Hotel?big, shiny, throbbing symbol of the final phase of East Village gentrification?has been battling rumors of financial instability pretty much since its December '08 opening, but those whispers have grown louder in recent months. Just before the Christmas break The Real Deal shed some light on the hotel's money troubles?namely a German bank's claim that the hotel is in default on $52 million in loans, and the hotel's owners could be on the hook for millions in personal guarantees. The hotel's reps responded that the bank's lawsuit is just a formality on the way to debt restructuring, but even if that's the case there's still the matter of the $10 million in liens filed by a growing group of unpaid contractors. The largest claim? Probably the bill for hazardous materials removal.
· Bank claims $52 million default on Cooper Square Hotel loans [Real Deal]
· Cooper Square Hotel coverage [Curbed]