Less than a year after a federal bankruptcy judge in Pittsburgh cleared a Chapter 11 redevelopment plan for Century III Mall, an order for final decree has been entered in the bankruptcy case and the bankruptcy case has been closed.
Century III Mall: Case Closed
Since first filing the Chapter 11 petition in September 2018, Kirk B. Burkley and the Bernstein-Burkley legal team representing Century III Mall PA LLC encountered many issues, including a judgment in favor of Sears in the amount of $4.2 million, a decrease in tenants and rents in the mall complex, the national decline in shopping malls, and the conditions and necessary repairs required to improve the mall structure. The Debtor disputed the Sears claim and that claim was resolved very favorably for the Debtor, allowing the Debtor to proceed with the redevelopment plan.
What’s in the Redevelopment Plan?
As a part of the redevelopment proposed by the Debtor and set forth in the plan of reorganization approved by the Court, the Century III Mall Property will be completely redeveloped. This redevelopment is set to include green space, office/retail buildings, a residential complex, a hotel, an entertainment facility, a multi-tenant restaurant/retail buildings, and four restaurants.
Throughout the reorganization process, the debtor and Burkley met with elected officials for consultation and agreement, including Pennsylvania state senators Jim Brewster and Jay Costa, West Mifflin mayor Chris Kelly, as well as leaders of the Allegheny County Department of Economic Development. The debtor also worked diligently with the Bernstein-Burkley team to create a plan that would allow for secured creditors to be paid in full, as the current property would not provide the revenue necessary to pay the debtor’s secured creditors.
Kirk Burkley and the Bernstein-Burkley Bankruptcy & Restructuring practice group are highly skilled in corporate reorganization, including that involving shopping centers and malls. For more information about what Bernstein-Burkley can do, visit their Bankruptcy & Restructuring page or reach out at firstname.lastname@example.org.