Sears objects to Century III Mall redevelopment plan in Chapter 11 filing

The ownership of Century III Mall’s biggest creditor in its Chapter 11 filing objected to its proposed redevelopment plan in a court filing made early last week.

In response to an affiliate of Las Vegas-based Moonbeam Capital’s late June reorganization filing that called for a full demolition and redevelopment of Century III Mall into a new mixed-use project, Sears Holdings Corp. filed a critical response to the proposal on July 29, arguing the court should not approve a disclosure statement as part of the procedure of a larger approval of the full reorganization plan.

In the filing, the lawyers for Sears called the proposal “devoid of any substance and ripe with unsupported assumptions regarding the valuation” of the mall, calling the plan “speculative at best, and its success hinges on yet unidentified lenders and funding sources appearing to provide (the mall’s ownership) with over $100 million in loans.”

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