A condominium association for a Times Square hotel and residential tower is seeking to stabilize itself with a bankruptcy filing in federal court that accuses the property's original developer of self-dealing, filing frivolous lawsuits, and other mismanagement using control of residential condo units at the property.

The condo board for the Cassa property — which includes 165 hotel rooms and 53 condo units at 66-70 W. 45th St. — on Tuesday sought Chapter 11 reorganization.

The board claims Salim Assa named one of his companies to collect on a management agreement, ignored utility expenses, and engaged in other self-dealing while a prior owner was absorbed in a bankruptcy case. The condo board lists between $1 million and $10 million in liabilities in its bankruptcy petition.

Scott Markowitz, counsel for the condo association, told Law360 on Thursday that such a bankruptcy filing from a condo board is uncommon in New York. A board appointed by a new owner of the property filed the case to resolve a half-dozen state court lawsuits involving Assa.

"Coming out of Chapter 11, the condo association will be operating as it should be," Markowitz said. "Right now, it is hampered by all kinds of oddball litigation in state court with different judges and this will be a forum to hopefully resolve everything."

After completing the hotel and condo development in 2010, Assa's Waterscape Resort LLC faced a variety of lawsuits over payment of construction costs. Waterscape in 2011 filed for bankruptcy, leading Chinese conglomerate HNA Group to buy the property along with several other U.S. assets.

The hotel portion of the tower closed during the COVID-19 pandemic in May 2020 and has yet to reopen, according to the bankruptcy declaration filed Tuesday. HNA Group later filed its own bankruptcy in China in 2021 and defaulted on a $63 million mortgage loan. The lender foreclosed in 2021 and won a judgment of foreclosure and sale in February 2025.

Management of the tower is split between a board that oversees the entire property and another residential board that oversees the internal maintenance and management of residential units and common areas on the residential floors. Common charges are split between commercial unit-holders and those who own residential condos, according to court records.

While HNA's bankruptcy case was in progress, the Chinese company failed to pay certain common charges associated with the tower's hotel units. Assa, who controls the residential board, sought to collect the common charges through written demands and litigation, according to the Tuesday filing.

Assa still owns or controls 44 of the 53 residential condo units in the building — often illegally renting out the units, according to the declaration.

The condo board argues Assa in January 2022 won default judgment in a state court case that prevented HNA from collecting fees from residential unit owners, who pay about 45% of common charges for the property. The judgment also required HNA to pay $1.2 million.

According to the Tuesday declaration, the HNA-controlled board had failed to defend the action and was perhaps distracted by a pending HNA bankruptcy liquidation that was happening at the same time. The board was ultimately unsuccessful in vacating the decision.

Around the same time, HNA representatives on the residential board abandoned the asset, leaving no one to enforce basic governance since Assa and his family members held a minority stake with the remaining board seats.

"Assa embarked on a brazen course of self-dealing, flagrant breach of fiduciary duties and violation of the bylaws of the condominium," according to the bankruptcy declaration.

Assa, while HNA had abandoned the asset, racked up about $1 million in unpaid water and sewer bills, drawing a lawsuit from the New York City Department of Environmental Protection, according to the Tuesday filing.

Assa also used his position in charge of the board to appoint one of his own companies as manager in October 2023. The management agreement contained a poison pill stipulating the deal couldn't be terminated without the Assa-tied entity receiving payment in an amount of its own choosing.

Additionally, Assa executed a loan agreement that obligated the board to pay Assa's company $10 million with 15% annual interest.

"This amount is vastly in excess of the annual condo budget, especially given the amount of neglect and disrepair Assa has left the condominium in the wake of his 'management,'" the board claims.

After purchasing the property out of foreclosure in late August, real estate firm Aya New York appointed a new majority board that's trying to stabilize the condominium and bring in an independent management company to address deferred maintenance, according to court filings.

The new owner hopes to complete renovations and reopen the hotel in time for summer. Assa, however, has refused to provide vendor lists and contracts, for instance, or pay common charges for his residential units, according to the declaration.

Aya New York has also proposed extending a debtor-in-possession loan to cover maintenance and security costs at the property since Assa hasn't been paying fees levied on residential condo units.

"No condominium in New York City can operate properly if the residential unit owners, who are responsible for 45% of the condominium common charges, are not paying such common charges," according to the declaration.

Representatives for Assa could not be reached for comment Thursday.

The condo board is advised by Scott S. Markowitz, of Tarter Krinsky & Drogin LLP.

The case is In re The Condominium Board of Managers of The Cassa NY Condominium, case number 26-10379-mew, in the U.S. Bankruptcy Court for the Southern District of New York.