Capmark, the mortgage holder on downtown's First National Center, is agreeing to a request by the building's owners to exit their bankruptcy, but the motion remains contested by an asbestos removal contractor.
Aaron Yashouafar, chief executive officer of Los Angeles-based Milbank Real Estate and representative of investment groups in the property,
That financing, Yashouafar's attorneys argued, is critical to paying a required $12 million settlement with Capmark and resolving a $21 million mortgage that the lender foreclosed on in 2010 before the bankruptcy filing.
If the $12 million settlement is not paid to Capmark by May 27, Yashouafar has agreed to give up any protest to the foreclosure and agree to the appointment of a receiver who would be tasked with disposing of the landmark.
Yashouafar's attorneys explained in their April 5 pleading that he was unable to obtain the $12 million in financing while still under the shadow of the bankruptcy.
Yashouafar also remains indicted on three counts of theft of property by false pretense and three counts of embezzlement in connection with alleged defrauding of a senior residents condominium association in Nevada. Yashouafar has pleaded not guilty to the charges.