The construction manager for the beleaguered American Dream mall and entertainment complex in New Jersey’s Meadowlands is suing JPMorgan Chase & Co. to recover more than $30 million of unpaid work and accrued interest for the project, Bloomberg News reported. Denver-based PCL Construction Services alleges JPMorgan, which arranged a construction loan and serves as administrative agent for American Dream’s developer, Ameream, is obligated to pay the bill if the developer doesn’t, according to the lawsuit filed June 15 in a New York federal court. “Ameream is now in financial distress,” PCL Construction Services said in the lawsuit. “Agent now has a contractual obligation to advance the amounts due and owing that Ameream failed to pay as they became due. Yet, agent has failed to do so.” Triple Five Group created Ameream to develop the megamall. Gurpreet Kaur, a JPMorgan spokesperson, declined to comment. Jessica Griffin, a spokesperson for American Dream, didn’t provide immediate comment. Lenders led by JPMorgan provided $1.7 billion in construction borrowing. In connection with the loan, JPMorgan, as agent, agreed to backstop Ameream if the developer couldn’t pay PCL, just as the bank “had the power to seek recovery from Ameream for every dollar advanced to PCL,” according to the lawsuit. In November, the megamall received a four-year extension on the loan from the JPMorgan-led group.
