The Oceanwide Plaza project in Downtown Los Angeles, once envisioned as a luxurious blend of condos, retail and hotel space, is mired in legal complications as creditors, led by Lendlease, take decisive action to address unpaid services totaling $4.3 million.
Lendlease and four other contractors filed a petition against Oceanwide Plaza LLC in the U.S. Bankruptcy Court, claiming they haven’t received payment for their contributions to the project, Bisnow reported. The move follows Oceanwide Holdings’ admission of financial difficulties more than four years ago, prompting Lendlease to view the legal action as the only means to secure compensation.
With the petition, Lendlease aims to compel the court to appoint a trustee who will oversee the sale of the Oceanwide Plaza property, effectively ending the protracted deadlock that has plagued the site for years. The goal, as stated by Lendlease, is to allow the unfinished project to move forward for the benefit of the local community.
The case is set for a hearing on March 28, where creditors are expected to argue that they have exhausted other avenues for compensation. The proceedings will require Oceanwide Plaza LLC to disclose information about its assets and liabilities, offering a comprehensive understanding of the company’s financial standing and why these resources haven’t been utilized to settle debts.
Compounding the developer’s challenges, the Los Angeles City Council voted to allocate $1.1 million in city funds to secure the site, addressing issues of trespassing and graffiti on the towers.
Oceanwide Plaza’s financial struggles have spawned a web of litigation involving unpaid contractors and EB-5 investors. Meanwhile, its parent company, China Oceanwide Holdings, is grappling with liquidation challenges on an international scale.
