• Bankruptcy Restructuring of North Pier Moving Forward

    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.

  • Chicago Rabbi Facing Foreclosure on his Gold Coast Home

    Chicago based Rabbi Meir Chai Benhiyoun of Lubavitch Chabad is facing foreclosure on his house at 1236 N. Dearborn St. He is using social media to raise funds for paying off a $4.6 million loan from PrivateBank Trust and Co. If he cannot raise the necessary amount by June 13, the home is going to auction.

    Lubavitch Chabad took out a loan for $4.9 million in 2005 for construction of a new synagogue located at 111 W. Chestnut St. Currently, services are held at the Dearborn St. house and regularly hosts up to 90 people during a holiday. In order to finance the loan, the Dearborn St. property was used as collateral. However, the downward change in the economy caused the construction plans to fall through.

    The Chestnut St. property is on the market for $3.1 million, $1.8 million less than the amount of the original loan. There is no mention of a short sale . LG Development Group almost purchased the property in 2008 with plans for a 28-story high rise. However, neighborhood complaints and zoning issues caused the project to fall apart. A completed sale of the property would have allowed Lubavitch Chabad to pay off the bank.  Talk is ongoing with another Jewish institution for sale of the property.

    For more information on foreclosure help , contact a Chicago area foreclosure attorney.

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