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Oceanwide Plaza sale clears hurdle as Los Angeles drops objections
The revised plan requires the proposed buyer to start comprehensive graffiti removal and blight abatement within 90 days of the judge’s confirmation, with a six month deadline to close.
Bisnow reports a sale plan for the $1.2B Oceanwide Plaza can move forward after a bankruptcy judge indicated she intended to approve a revised liquidation plan. At Monday’s hearing, attorneys for the city of Los Angeles withdrew their objections following changes aimed at accelerating graffiti removal, mitigating blight, and speeding up a sale.
The updated requirements call for the proposed buyer, KPC Square LLC, to immediately initiate comprehensive graffiti removal and blight abatement efforts, with a 90 day window after the judge confirms the plan to complete the work. The plan also sets a six month time frame for KPC to close the sale, with a backup buyer route if KPC falls through.
According to filings, the six month deadline can be extended only if the court, KPC, and Oceanwide unanimously agree. Bisnow also notes that last minute revisions made during a mid hearing break led other objectors, including a mechanic’s lien holder, to conditionally withdraw objections pending review of the final document scheduled to be submitted Tuesday morning.
The bankruptcy judge, Deborah Saltzman, said at Monday’s hearing that she will enter an order confirming the plan once it meets the requirements under Section 1129 of the U.S. Bankruptcy Code, after prior objections had slowed progress on liquidation approval. Earlier this year, the city had questioned KPC Square’s ability to complete the $1.2B project.