Downtown's landmark First National Center is set to exit bankruptcy with as its owners prepare to pay $12 million to lender Capmark to end an attempted foreclosure.
Investment groups that own the property, led by Aaron Yashouafar, chief executive officer of Los Angeles-based Milbank Real Estate, declared bankruptcy after Capmark declared them to be in default on a $21 million mortgage.
The foreclosure was settled when Capmark agreed in February to dismiss the loan with a $12 million payment. That agreement comes with a May 27 deadline that, if not met would turn control over to a receiver who would be tasked with disposing of the property.
Yashouafar then sought to exit bankruptcy with attorneys reporting to Judge Niles Jackson that take-out financing to pay off the $12 million couldn't be obtained otherwise. Creditors, including an asbestos contractor who last week filed an objection to the plan, all reported to Jackson on Wednesday they support the end of the bankruptcy action.
Attorneys for Yashouafar also told Jackson he has obtained a pre-approval for the take-out financing pending the approval to end the bankruptcy.