Things are looking less certain for downtown Los Angeles’ infamous, incomplete graffiti-covered skyscrapers, a month after its largest creditors became a white knight buyer.
The bankruptcy court on Monday approved the City of Los Angeles’ request for a continuance of the confirmation hearing that could seal the stalled-Oceanwide Plaza’s fate. It was supposed to be on April 9 but is now scheduled for May 19.
But the problems go beyond the city’s plea. The Los Angeles County Treasurer and Tax Collector and the United States Trustee, a Department of Justice entity that oversees the federal bankruptcy system, have filed their own oppositions, too.
Let’s start with the city, which claims to need more time to complete its evaluation and diligence process, attorneys for the City of Los Angeles wrote. This occurred after having a conversation with the proposed $470 million purchaser: Dr. Kali Chaudhuri’s KPC Group and Lendlease. KPC came to the deal via its control of another creditor, LA Downtown Investment – after purchasing LADI’s debt. Lendlease was the mega-development’s one-time general contractor.
The city needs to review and assess KPC and Lendlease’s ability to close the deal, secure financing and complete the development, the court documents read. The city has identified issues with the purchase agreement that requires landing entitlements and financing, its attorneys said, without much further clarification.
An earlier statement Mayor Karen Bass’ office put out late-February noted, “The City of Los Angeles is eager to see an expeditious close on the Oceanwide Plaza site to new ownership following the April 9, 2026 hearing.”
Los Angeles County, on the other hand, has an issue concerning delinquent property taxes to the tune of $40 million, per its opposition. The L.A. County attorneys claim the debtor, Chinese conglomerate Oceanwide Holdings, promised the county’s tax liens would be the first paid off post-sale. But based on its understanding of the debtor’s liquidation plan and purchase and sale agreement, that isn’t the case.
The United States Trustee, meanwhile, has a problem with provisions that it says are inconsistent with bankruptcy code and precedent. Lawyers for KPC and Oceanwide requested the court overrule the objections. Attorneys for the City of Los Angeles, L.A. County, United States Trustee, KPC and Oceanwide did not immediately respond to a request for comment.
A source familiar with the matter previously told The Real Deal there was another potential buyer, an all-cash one, behind the scenes. That buyer consists of a partnership between an overseas investor and Cityview, though the details aren’t completely clear. The source said Chaudhuri has been shopping for construction loans but hasn’t found a taker.
It could cost another billion dollars to complete the three towers that occupy an entire city block, bounded by Figueroa, Flower, 11th and 12th Streets. The development has been stuck in bankruptcy court for years, and it is unclear whether it would be completed by the 2028 Summer Olympics even if that is the goal.
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