KRCM Astoria Portfolio Corp. - Case Summary

Business Description

KRCM Astoria Portfolio Corp. (the "Debtor") owns and operates a portfolio of three multi-family residential apartment buildings located in Astoria, NY.

• The portfolio consists of 128 units, all of which are currently leased, and contains a mix of free-market and rent-stabilized apartments.
• The properties are located at:
  • 23-05 30th Avenue, Astoria, NY 11102
  • 23-15 30th Avenue, Astoria, NY 11102
  • 21-80 38th Street, Astoria, NY 11105
• The property at 21-80 38th Street also includes nine ground-floor commercial tenants and houses the Debtor's main offices.

According to the declaration, the value of the properties is appreciating.

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Corporate History

KRCM Astoria Portfolio Corp. is a privately held company whose stock is not publicly traded. 100% of the Debtor's equity is held by Rajmattie Persuad.

• The Debtor's primary debt obligation is a mortgage loan that was issued in 2017.
• The loan was subject to a number of modifications and forbearances, particularly in response to the economic effects of the Covid-19 pandemic.

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Operations Overview

The Debtor is managed by its sole equity holder, Rajmattie Persuad, who oversees all legal and financial affairs and will continue to serve as manager during the Chapter 11 case. The Debtor has four full-time employees, consisting of the manager and one superintendent for each of the three properties.

• The portfolio generates a combined monthly rent roll of approximately $357,300.

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Prepetition Obligations

The Debtor's primary liability is a consolidated first mortgage encumbering the three properties. A formal appraisal conducted at the end of the prior year valued the properties at a combined total of approximately $45 million.

Secured Debt

• The properties are encumbered by a consolidated first mortgage held by the Federal National Mortgage Association (Fannie Mae) with an original principal amount of $34.7 million.
• According to a payoff letter dated June 10, 2025, Fannie Mae asserts a disputed claim of approximately $34 million.
  • This amount includes approximately $1.5 million in contested default interest.

Other Obligations

• The Debtor is also subject to certain disputed claims asserted by the City of New York for Environmental Control Board (ECB) violations.

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Events Leading to Bankruptcy

The Debtor’s Chapter 11 filing was precipitated by a dispute with its mortgage lender, Fannie Mae, which escalated into a foreclosure action and the appointment of a receiver, threatening the Debtor's ongoing efforts to refinance its properties.

Dispute Over Default Interest

• The conflict centers on approximately $1.5 million in default interest that the Debtor claims was improperly demanded by the lender.
• The Debtor asserts that it remained current on all obligations during agreed-upon forbearance periods and that the lender demanded default interest for a period beginning May 1, 2024, despite a maturity extension through Feb. 1, 2025, and without providing written demand as required under the loan documents.

Foreclosure and Appointment of a Receiver

• While the Debtor was pursuing a refinancing, Fannie Mae commenced a foreclosure action in the U.S. District Court for the Eastern District of New York.
• The lender subsequently obtained a court order, dated Oct. 1, 2025, appointing a receiver to manage the properties.
• Believing the appointment of a receiver would undermine its refinancing prospects and cede control of its assets, the Debtor filed for Chapter 11 protection to preserve asset values and maintain the status quo.