Lenders Rip Chicago Developer's Ch. 11 Plan, $195M Sale

Law360, Wilmington (October 29, 2012, 5:25 PM EDT) -- A week after unveiling a plan to escape bankruptcy by selling its Chicago property in pieces for a total of $195 million, Old Prairie Block Owner LLC met stiff resistance Thursday from lenders claiming it is misusing the process to dodge foreclosure.

In an objection filed in Illinois bankruptcy court, mortgage lender CenterPoint Properties Trust said Old Prairie’s latest plan is “just as defective” as the six plans that preceded it, noting that one proposed buyer already has disavowed its part in the deal and calling...
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