On Thursday, Bank of America, who's owed $205 million by Cabi Downtown LLC for construction loans, will be in bankruptcy court to hear a ruling by the judge on the bank's motion to dismiss the reorganization or modify the so-called automatic stay to permit foreclosure of the 49-story Everglades on the Bay Miami condos for sale.
The bank has filed another motion asking the bankruptcy court to stop leasing unsold units, if Cabi survives Thursday's hearing.
Some of the 244 units under lease the bank says were rented in violation of the owner's own standards. The motion alleges that 49 units were rented to individuals without any background or credit check and 42 units were rented to people with substandard credit scores, and nine of the Miami condos for sale are occupied by convicted criminals.
Cabi's plan would give the bank a five-year secured note in which 2.5% interest would be paid in cash. The interest rate would be the London interbank offered rate plus 2.5% and the difference is to be paid in more debt. Unsecured creditors owed $7.5 million would receive 6.7% in cash. The plan would be funded by a new equity contribution of $4.5 million.
According to court papers, in August, Cabi filed under Chapter 11, hours after the bank began foreclosure on a $34.1 million loan. The project at 224 Biscayne Boulevard has 849 Miami condos for sale with 60,000 square feet of retail space and is the site of the former Everglades Hotel.
The company, which says it is the largest and most profitable real-estate developer in Mexico, is owned by GICSA.
Contributed by MLR Realty
Home