Bankrupt Lender, Developers Settle $36M Loan Fight

Law360, New York (May 24, 2013, 7:18 PM EDT) -- The loan manager of bankrupt Mortgages Ltd. reached a $43 million settlement with shopping mall developer PDG Los Arcos LLC and others on Thursday, resolving its claims that the developers defaulted on $36 million in construction loans.

ML Manager LLC asked an Arizona bankruptcy court to greenlight the deal, which resolves claims arising out of a $26 million loan Mortgages Ltd. provided to PDG and a loan of more than $10 million given to National Retail Development Partners I LLC in 2007.

The settlement includes a...
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