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Financial backer agrees to drop suit against Lauth

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The largest financial backer of Lauth Group Inc. agreed Thursday to drop its federal lawsuit against the Indianapolis-based real estate developer, which is reorganizing under bankruptcy protection.

An affiliate of Chicago-based Inland American Real Estate Trust canceled the suit, while another affiliate withdrew its request to have a Chapter 11 trustee appointed to oversee Lauth’s operations.

“We will continue to move forward with the important business of restructuring the company’s portfolio and exiting bankruptcy,” Lauth Chairman Robert Lauth said in a written statement. “Both parties agreed to appoint a special mediator to participate in the bankruptcy cases and provide the court with non-binding commentary on proposed restructuring efforts.”

The judge set a hearing on a settlement agreement involving four of Lauth’s properties for April 20.

Inland American invested $228 million in 2007 for an ownership stake in dozens of Lauth properties. But Lauth defaulted on its agreement to pay dividends to Inland in late 2008, and several Lauth subsidiaries filed for Chapter 11 bankruptcy reorganization in May 2009.

Lauth’s troubles began in early 2008 as demand dried up for the office, industrial and retail developments that had fueled its rapid growth. The company doubled its revenue from 2004 to 2005, then doubled it again from 2005 to 2006. During the same period, the value of Lauth’s project lineup jumped from $143 million to $592 million.

The company started 2008 with about 450 employees, but layoffs have since shrunk the staff to about 40.

Inland initially challenged Lauth’s bankruptcy filing by claiming it had taken control of Lauth's holding company, LIP Holdings LLC, after it defaulted on their agreement.

But Lauth pointed to a section of the original agreement with Inland that required approval from at least one Lauth representative and one Inland representative for major company decisions, including a change in control. The judge agreed with Lauth’s interpretation.
 

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  1. Again, Maria.... how much are YOU contributing? The man doesn't HAVE to give a red cent! What don't you get about that? And, I know this might actually require some actual "facts", but can you please point me to the parking garage that the city gave to him?

  2. Another internet tuff guy I see. And what would the basis of taking the person to jail? If they were drunk, yea. But if not, there would be no jailable offense. All these gestapo, Nazi, jackboots are running SCARED. When the SHTF in this country who's side are you going to be on? The citzens, or the establishment? Better make up your mind quick because it's not far off. I would rather be trying to make friends than enemies. But no worries my "friend", God will take care of you and your likes in good time. It tells us that in the bible. If you stand, support and help carry out the plans of evil rulers, you will NOT be spared the wrath of God. That simple. All you can do is repent now and ask God to forgive you.

  3. Yes, Ersal, thank you for donating a whole $75,000, while the city gives you a parking garage for free and is going to pay for a multi million dollar stadium for you. I'd be donating money too if I was on welfare.

  4. I live and work in Broad Ripple and agree 100% that the traffic is not a significant problem. It can be slow at some times, but hey...this is an urban area. As for the development itself...HOORAY. Office and retail development brings people during the day, something that our community needs much more of. Thank goodness people are finally waking up to take advantage of the serene White River views. The BRVA land us committee endorsed the project because they know how these kind of projects help offset the cries of "too many bars". Pray that this development, and the proposed major investment by Browning, move forward. And remember Good Earth, these will mean hundreds of daytime people - potential shoppers for your store.

  5. Under current, previous existing law, this new law would be unconstitutional. Not that supposedly having to have a driver's license to drive isn't in the first place.

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