Business

Swig is close to bankruptcy

Developer Kent Swig is close to filing personal bankruptcy because he can’t afford to pay a recent $28 million judgment on his defaulted Sheffield57 condo conversion project in Midtown.

“We are exploring all options,” one of Swig’s advisers told The Post. “No one wants to do it but it’s certainly a play on the chessboard that we are considering at this time.”

Swig may also be on the hook for fraud if it comes out that he lied about his personal assets in order to get hefty bank loans he couldn’t realistically afford to pay back.

“He has a money problem and another problem — if he borrowed money based on false statements then he can be prosecuted,” said a source close to the case.

The judgment relates to a lawsuit filed by hedge fund Square Mile in January after Swig defaulted on a $21.15 million personal loan he obtained to help finance Sheffield57, which has since ended up in foreclosure and was auctioned off. Square Mile claims Swig misrepresented his assets when he obtained the loan.

Square Mile is also expected to seek legal action against Swig after he defaulted on another loan for $18.5 million for another development, at 25 Broad St.

In an affidavit filed on Sept. 15, Swig stated that he does not have access to $28 million in cash or liquid assets, and warned that the default would cause his business to collapse and force him to file for personal bankruptcy.

“This will entail severe financial consequences not only for me, but for my family, my business and my employees,” he wrote.

Swig and his Swig Equities has bought or developed more than 4 million square feet of commercial office space and 1.5 million square feet of residential space in the city.

Swig is also co-owner and co-chair of Terra Holdings, the parent of residential brokers Brown Harris Stevens and Halstead Property.

Swig did not return calls.

A Terra Holdings spokesman said that the company does not comment on the “personal affairs” of the principals of the firm and that even the potential of bankruptcy will have no impact on the company’s ongoing business.

Brown Harris and Halstead are also debt-free, the spokesman said, and don’t rely on capital from the principals for ongoing business.

Square Mile did not return calls.