A Rye Brook construction firm embroiled in a lawsuit over a failed project has filed for bankruptcy protection.
AA Jedson Company declared $689,000 in assets and $3.4 million in liabilities in a Chapter 7 liquidation petition filed on Oct. 18 in U.S. Bankruptcy Court, White Plains.
Its greatest liability is a potential $2.5 million court judgment that a client is seeking in Manhattan Supreme Court.
The construction firm is based in the Rye Ridge Plaza, according to the bankruptcy petition. A Connecticut business record lists the principal office in Greenwich, near Westchester County Airport, and shows the Rye Brook location as a mailing address.
Michael A. Bordes is AA Jedson’s chief executive officer.
In 2021, T-Seventeen LLC sued AA Jedson and Bordes for $2.5 million, over a $3.2 million contract to build a 4-story mixed-use building in Greenpoint, Brooklyn.
T-Seventeen blamed AA Jedson for long delays as the city building department reviewed plans and drawings. T-Seventeen also claims that AA Jedson charged for work that was not performed; failed to pay employees, subcontractors, suppliers and insurers; and in 2021 repudiated the contract and abandoned the jobsite.
AA Jedson denied the accusations and counter-sued for $361,000. T-Seventeen refused to pay for completed work on time, according to the counter-claims, and when the contractor made clear that it could not continue the project without timely payments, T-Seventeen instructed AA Jedson to cease work.
The lawsuit is pending and AA Jedson lists the $2.5 million claim as disputed.
The bankruptcy petition also lists $345,552 owed to 14 suppliers and vendors; $313,098 for bank loans and credit card debt; $203,748 to a New Jersey firm that supplies laborers; $36,994 to insurers and for workers compensation.
AA Jedson’s assets, $689,000, consist entirely of overdue money owed for services. It has no money in its Chase bank account, no inventory, no furniture or equipment, no machinery, no real estate.
The firm made $3.6 million in 2022, $565,000 last year, and $21,208 so far this year.
AA Jedson is represented by Manhattan attorney Jeb Singer.
