As of March 2010, Berry-Hill had not been meeting certain monthly cash expenses, including $140,000 in rent, these court papers also show. This amount is owed to Berry-Hill’s affiliate, 11 East 70th Corp, which then pays $108,000 in mortgage fees on an Upper East Side gallery premisis—now also in default. As of March 2010, Berry-Hill also owed around $28,000 in fees for storing art on which the defaulted ACFS loan was secured, plus insurance premiums for this art, and had not paid its employees for two different pay periods.
In a separate suit brought in New York state court in June 2010, Chinatrust Bank is seeking foreclosure of the gallery’s premises, alleging default in April by 11 East 70th Corp on its $16m mortgage for the two properties on the Upper East Side that house the gallery. That loan is now incurring interest at a default rate of 13.5%, according to Chinatrust, or $5,917 daily. Chinatrust is also asking for repayment of its legal fees.
Berry-Hill Stacks Up Lawsuits (The Art Newspaper)