For those interested, here is a copy of the “Verified Complaint and Application for Appointment of Receiver” filed December 3, 2008, naming M&I Bank as plaintiff and Windsor Century Plaza as defendant.
Here is a portion of a blog comment, apparently made by a representative of the developer of Century Plaza, addressing the bank’s action:
“M & I BANK LOAN: To the best of my knowledge (which is, admittedly, limited as a function of my role) the developer is not in monetary default but, rather, technical default. This is why there has been no foreclosure proceeding (not to say that can’t happen, it just isn’t imminent). To say the developer simply didn’t pay their loan and thus they are in default is very misleading (and the statements to that effect on this site were by posters who know far less than me and are false speculation). The bank put the receiver in place to give them ‘feet on the ground’ to for their continued funding of the project (their funding has been inconsistent at best over the last few months creating extreme difficulty for the developer to function). M & I’s main goal is to reduce their real estate exposure in Arizona which means they want out of this loan. In a different credit environment the developer would merely extend this loan and the bank would forebear the minor technical breach. Unfortunately in this environment this just won’t happen. The most likely outcome is a repositioning of the lending facility or refinance. The least likely, foreclosure. Either way funds will be available for the continued operation of the property (including funding the HOA) in order to protect this valuable asset. Not doing so would be illogical and simply won’t happen.”
This all sounds very credible to me but recognize that banking matters such as these are way beyond my scope of experience and knowledge.
Here is the above comment in its entirety as well as comments made by others.
