A former White Plains construction management company that petitioned for bankruptcy protection last month is citing a contract dispute with a New York ski resort that cost it $4.2 million.
Empire Core Group LLC declared nearly $6.1 million in assets and in liabilities in U.S. Bankruptcy Court, White Plains, on Oct. 6.
CEO Florim Lajqi stated in an affidavit, when he petitioned for Chapter 11 reorganization on Sept. 22, that he is confident he can rebuild his business and remain profitable until he has his “day in court” to recover claims against the New York State Olympic Regional Development Authority.
Lajqi incorporated Empire Core Group in 2014 as a construction management business. It was based in the Bar Building in downtown White Plains but operates now from his home in New Rochelle’s Wykagyl neighborhood.
Empire has had successful years, with revenues reaching nearly $100 million, Lajqi says, as well as difficult times when it nearly had to close as clients failed to pay bills. But “it has always been able to rebound.”
During the Covid-19 pandemic, for instance, Empire projects were shelved or cancelled and it was unable to collect $3 million. But when competitors shut down, Lajqi says, he broadened his business beyond project management to take on lucrative general contracting jobs.
Lajqi traces Empire’s current financial stress to a 2024 contract with the New York State Olympic Regional Development Authority. The company won a $21 million deal to renovate Belleayre Mountain Ski Center in Highmount, Ulster County.
In Lajqi’s version of events, the project was flawed from the start with deficient designs, delays and incompatible site conditions beyond Empire’s control. The state terminated the contract improperly, he claims, while Empire was owed $4.2 million. Empire sued the Olympic Regional Development Authority this past March for breach of contract.
Lajqi also refers to setbacks on two school projects, in Ellenville, Ulster County and Pawling, Dutchess County, where he says Empire is owed more than $1.3 million.
As finances became strained, Lajqi says, Empire obtained financing from merchant cash advance lenders but it was unable to keep up with the high-interest loans.
For example, on Jan. 6 Foretrust Funding of Miami, Florida agreed to pay Empire $200,000 with the expectation of getting back $296,000, according to a claim filed on Oct. 7. Now Foretrust says Empire owes $2,877,497.
Still, Lajqi says he has excellent relationships with long-time clients and a significant current project, he is negotiating for more work, and he believes Chapter 11 reorganization will enable him to rebuild again.
Empire is represented by Eastchester attorneys Erica R. Aisner and Dana P. Brescia.
