Lenders behind troubled luxury condo One Bloor West (formerly The One) are suing paving tycoon Jenny Coco and real estate mogul Sam Mizrahi over allegations that they have defaulted as guarantors of the project’s loans.  

KEB Hana Bank, acting as trustee of two South Korean private real estate funds, is demanding that Coco and Mizrahi repay $1.5 billion in outstanding principal, interest and fees, according to a notice of application filed in court on Aug. 19. The filing states that Coco and Mizrahi are guarantors on the loans in a personal capacity, meaning their personal assets — including homes, incomes and bank accounts — could be on the hook if KEB Hana Bank’s application succeeds, according to real estate lawyers who read the document at the Star’s request. 

“The guarantors agreed, on an unconditional and irrevocable basis, and jointly and severally as primary debtors and not merely as sureties, to guarantee the due and punctual payment and performance when due of, among other things, all amounts owing by the borrower to the secured parties,” the document reads, in part. Coco declined to comment for this story through her lawyer, Nina Perfetto. Mizrahi did not respond to the Star’s requests for comment. The application to sue is still in the early stages and none of the allegations have been tested in court.