He’s in a courtroom state of mind.
Legendary rapper Jay-Z filed a $3.7 million suit yesterday against an investment firm and a boutique bank he claims are trying to “bleed” him over a loan on his failed Chelsea hotel project.
The hip-hop mogul — whose real name is Shawn Carter — charges that Highland Capital Management and NexBank, both based in Dallas, intentionally dragged out talks to renegotiate his $52 million note so they could reap $20,000 a day in interest and fees.
Jay-Z originally borrowed the money in 2007 from another company, Column Financial of Manhattan, which later sold his loan to Highland, according to his Manhattan federal court filing.
But after the economic crisis scuttled plans for his J Hotel on West 21st Street, the husband of singer superstar Beyoncé Knowles claims Highland “duplicitously stalled” his efforts to hand over the deed to the site in lieu of foreclosure.
In a statement, Highland said the loan matured last August and Jay-Z (who it calls Mr. Carter) failed to repay the loan, which remains in default.
“Highland believes the claims asserted by Mr. Carter are meritless, and [the company] will vigorously defend itself and intends to pursue the obligations owed to Highland’s investors by the borrower, Mr. Carter and the other guarantors,” the statement said.