A New York State Supreme Court judge has ruled that Charles Cohen owes creditor Fortress Credit Corp. $187.25 million if a planned auction of assets including Landmark Theatres does not cover the $500 million the New York real estate magnate owes.

Repayment of that 2022 loan has been in dispute for a year. The parties agreed to a series of extensions in 2023, but Fortress ultimately called in the loan. It claimed Cohen was in default and filed a lawsuit seeking an auction of the underlying collateral, which, along with Landmark, includes a design center, office tower and hotel.

The lawsuit played out over the summer, and Judge Joel M. Cohen ultimately ruled in Fortress' favor in August, setting an auction date for November 8. In a statement to Deadline at the time, a Landmark spokesperson said, "Despite the complexities of this commercial situation, Landmark remains committed to its business and anticipates a favorable resolution to the ongoing litigation."

The $187.25 million loan guarantee — plus costs, legal fees and expenses — signed by Cohen is an afterthought that Fortress sued to enforce. As the judge wrote, it was intended to "secure the repayment in part of a loan made to Cohen Realty Enterprises LLC ("CRE") and related entities (with CRE, the "Borrowers") in the original aggregate principal amount of $533,641,618."