Downtown Los Angeles land owner Meruelo Maddux Properties Inc. has struck a deal to settle its differences with a lender group that had threatened to blow up the company’s bankruptcy-exit plan with a rival proposal.
Meruelo Maddux is now set to ask a bankruptcy judge on Monday to approve a settlement it reached with Legendary Investors Group. Under the deal, Legendary will swap its $67.8 million in Meruelo Maddux mortgage debt for ownership of seven properties.
As part of the agreement, Legendary and fellow lender East West Bancorp Inc. will drop their rival takeover plan that would have pushed out the company’s senior management, including Chief Executive Richard Meruelo. Legendary had earlier acquired all of East West’s interest in Meruelo Maddux loans. A plan confirmation hearing is scheduled for Thursday.
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