The 4 year long dispute for the lot North of McCormick place, the well known convention center in Chicago, was given a deadline of January 10, 2013 by bankruptcy Judge Jack Schmetterer. The judge asked that by the 10th, the current owners, Pam Gleichman and Karl Norberg, have a binding agreement securing $150 million for part of the land.
The couple’s plan was to split the parcel and sell it to 2 entities that would build 2 hotels, but their lender has other plans. Center Point Properties Trust, the lender, wants to foreclose on the property and is claiming that the couple’s sale contract is filled with loopholes and allows too many opportunities for the couple to back out.
While Center Point claims it is owed $80 million, they also told the judge on Thursday that since they filed foreclosure in 2009, the couple has delayed the process twice with Chapter 11 protection, both in 2010 and this past September, and this was just another ploy for more time.
The lot was rumored to be the location for a new stadium for DePaul University’s basketball team, but Ms. Gleichman denies to having any conversations about an arena. She also claims that Ground Lease Capital Partners LLC, from New York, and Global Builders Inc, from Plainfield, have committed to closing with the couple. They also shared that RM Mister Enterprises LLC agreed to provide a $16.8 million letter of credit securing the sale to ground lease.
The judge however had heard enough and said he needed solid commitments and proof of a letter of credit by January 10. Time has yet to reveal the latest...
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