Developer Dan McLean has proposed paying a Texas vulture investor approximately 40 cents on the dollar to settle a $39 million mortgage on North Pier Terminal that is in arrears. The North Pier Terminal is located west of Navy Pier at 401 East Illinois St.
A chapter 11 bankruptcy petition for the North Pier Terminal was filed in February, days ahead of a scheduled foreclosure sale. Part of the restructuring plan is to keep Mr. McLean on as a consultant with the possibility of his earning fees through the McLean-Massey company, according to documents in the case. Geneva Capital Group, who holds a second mortgage of almost $5.2 millon on the property, backs the plan. Lawyers for Beal Bank, a mortgage holder, objected to the plan, arguing that any fees paid the McLean-Massey go to creditors instead. Judge Black rejected the argument, stating that the men can be paid for future work.
Beal Bank, who holds the first mortgage on the property, has suffered setbacks in their goal of getting full payment on their loan. U.S. Bankruptcy Judge Bruce Black ruled that the McLean-Geneva plan has secured a financing commitment for the restructuring.
Florida real estate investor Shlomo Khoudari has agreed to provide $17.5 million in financing. He would own the building if it emerges from bankruptcy protection.
If you have questions about bankruptcy court , contact a Chicago bankruptcy attorney. The bankruptcy process is complicated. A bankruptcy lawyer can answer any questions you may have.