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Broadbent subsidiary seeks bankruptcy reorganization

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A subsidiary of Broadbent Co. that owns the building that houses the local concert venue the Music Mill is seeking to reorganize under the protection of bankruptcy.

White River Investments LP voluntarily filed for Chapter 11 on Oct. 4 in Indianapolis, listing assets of $1.4 million and liabilities of $1.3 million.

A lawyer for Broadbent, long one of the city's biggest developers of shopping centers, did not immediately return calls from IBJ. The Music Mill, in Broadbent's Clearwater Crossing shopping center on East 82nd Street, went out of business twice in 2009, but reopened each time after ownership changes.

The bankruptcy is the latest sign of financial strain at Broadbent Co. The firm and its president, George Broadbent, are immersed in nearly a half dozen lawsuits with lenders and other creditors that collectively are seeking more than $20 million.

The court fights began in August 2009, when Broadbent sued PNC Bank and Huntington, claiming they were wrongly attempting to restrict access to a $50 million credit line.

The largest secured creditor in the White River bankruptcy is Huntington, which is owed $1.1 million, court records show.

The company is the second Broadbent subsidiary to file for Chapter 11 this year.

Greenwood Point LP, which owns the Greenwood Point strip mall across the street from Greenwood Place, filed for reorganization on Jan. 20. That case is pending in U.S. Bankruptcy Court in Indianapolis.
 

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  • $B vs. $M
    From the paragraf on the front page, it's apparant that proofreaders don't work holidays

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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