Bankruptcy judge denies latest attempt by The Mountain of Beverly Hills owner to avoid foreclosure

Last week, the owners of the 157-acre spread delayed a planned auction by transferring ownership, essentially to itself

TRD LOS ANGELES /
Aug.August 19, 2019 03:31 PM
The Mountain and Mark Hughes (Credit: Realtor, Wikipedia)
The Mountain, whose owner owes the estate of the late Mark Hughes $200 million, photo above (Credit: Realtor, Wikipedia)

A bankruptcy court judge overseeing who gets to own the 157-acre plot of land known as The Mountain of Beverly ruled Monday that lenders can foreclose on the property.

The decision, court documents show, marks a near death blow for the owner, Secured Capital Partners, which put the property on the market last summer for a whopping $1 billion. Secured Capital had filed paperwork for bankruptcy protection in May, and temporarily delayed a planned auction of the property by transferring ownership to Tower Park Properties last week. The property remains on the market, now for $650 million.

The auction, which was planned for Aug. 15 in Pomona, is now scheduled for Tuesday. It is unclear whether Secured Capital or Tower Park, whose owners are tied to convicted felon Victorino Noval, will mount another attempt to keep the land.

Any interested buyer would have to bid at least $200 million to cover the existing liens on the property, from the previous owner, the estate of Herbalife founder Mark Hughes. The Hughes trust has been trying to foreclose on The Mountain for several months, but has been delayed by Secured Capital’s legal tactics.

Lawyers representing both parties did not immediately respond to requests for comment.

The Noval family was able to prevent last week’s auction by transferring ownership of The Mountain from Secured Capital to Tower Park. Both entities are controlled by the Noval family.

Tower Park — which also filed for Chapter 11 bankruptcy — had a reorganization plan that specified the lenders had to provide a 21-day notice before they could foreclose on The Mountain. They also had to prove that Tower Park was at risk of defaulting on its loans.

But the bankruptcy court judge has ruled that Tower Park’s bankruptcy case “does not prevent the lenders from proceeding with the foreclosure sale.” It also struck down Secured Capital’s request for bankruptcy protection last month, siding with the lenders in both cases.


Related Articles

arrow_forward_ios
157-acre Mountain of Beverly Hills

Kuwaiti royal was defrauded of $160M investment in Mountain of Beverly Hills: lawsuit

Kuwaiti royal was defrauded of $160M investment in Mountain of Beverly Hills: lawsuit
Victorino Noval, Mark Hughes, and The Mountain

Here’s what LA brokers think the future holds for the Mountain of Beverly Hills

Here’s what LA brokers think the future holds for the Mountain of Beverly Hills
The Mountain, whose owner owes the estate of the late Mark Hughes $200 million, photo above (Credit: Realtor, Wikipedia)

Mountain of Beverly Hills sells for a molehill

Mountain of Beverly Hills sells for a molehill
Igor Olenicoff, President of Olen Properties (Credit: Tim Rue/Corbis via Getty Images)

Hundreds of California landlords down with PPP

Hundreds of California landlords down with PPP
Mitchell Englander (Credit: Lilly Lawrence/Getty Images)

Ex-councilman pleads guilty to accepting cash, escort for access to LA developers

Ex-councilman pleads guilty to accepting cash, escort for access to LA developers
Bernard Arnault and a map of the properties (Credit: ERIC PIERMONT/AFP via Getty Images, and Google Maps)

LVMH picks up another Beverly Hills storefront near hotel development site

LVMH picks up another Beverly Hills storefront near hotel development site
Mauricio Umansky and the office (Credit: Google Maps)

The Agency closes Palm Springs office amid larger cuts

The Agency closes Palm Springs office amid larger cuts
Kurt Rappaport and Citi Field, home of the New York Mets (Getty, Wikimedia Commons)

Kurt Rappaport reportedly bidding to buy New York Mets

Kurt Rappaport reportedly bidding to buy New York Mets
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...