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Specializing in insolvency and complex commercial matters since 1974

Court Confirms Plan Of Reorganization In Retail Shopping Center Case - April 2011

On April 12, 2011 the Bankruptcy Court confirmed the Debtor’s Chapter 11 plan that provided for the restructuring of first mortgage debt secured by a retail shopping center. Following a mediated settlement with the first mortgage holder, a consensual plan provided for the extension of the loan for five years, with interest payable at the rate of 5.25% during the extended term. The plan provides that interest only will be payable for one year. In years two and three, the loan will be amortized on a 30-year amortization schedule; in years four and five, the loan will be amortized on a 25-year amortization schedule. Unsecured creditors will be paid in full. Edward Peterson, Harley Riedel, and Michael Bachman represented the Debtors in these cases.