A day after a bankruptcy court appeared poised to clear the sale of the graffiti-covered towers in the heart of downtown, another offer surfaced — along with an apparent accusation that it’s being summarily dismissed even with the bling it brings to the case.
The bling comes courtesy of A.C. Green, a member of the Magic Johnson-Kareem Abdul-Jabaar-led “Showtime” edition of the Los Angeles Lakers, with three NBA championship rings to his credit. Green is leading an investment group that has offered $500 million cash for Oceanwide Plaza, and pledged more than $1 billion in capital to complete the abandoned development of three towers in the heart of Downtown Los Angeles.
The purchase and redevelopment proposal from AA Group, as the joint venture is called, is led by Green and executive Albert Moyer. A third executive, Brian Simpson, of an entity called Black International Holdings, filed the documents.
Moyer and Simpson confirmed the matter; Green did not immediately respond to a request for comment; a representative for Oceanwide said it’s aware of the offer.
The entity, in a Tuesday filing, said its offer was not mentioned in court or heard by the judge. Emails included in the documents show the venture communicated with involved parties, including the chief restructuring officer months earlier; the latest came this past weekend before the hearing.
The entity included proof of funds from Dwight Capital and 1st Capital Financial in the documents. The capital structure options include senior debt up to $600 million; a second option that is $100 million equity or debt plus $500 million senior debt — and there is up to $300 million supplemental financing.
In total, the AA JV put its fund at around $2 billion, via the $900 million above, $100 million in institutional equity and another billion via equity partners. The latter were not identified, but a person familiar said Green has the support of several of his 1980s basketball teammates.
The group said it can close in 90 days.
On Monday, after an hours-long confirmation hearing and a lengthy break aimed at getting the lawyers on the same page, the federal bankruptcy court appeared set to clear the KPC-Lendlease JV’s purchase of Oceanwide Plaza. Its offer was $470 million — $400 million in credit and $70 million cash.
That offer of cash and credit is said to be worth about $517 million now because of still-accruing property taxes and interest on the claim KPC purchased and more. The court still has not confirmed but a decision appears imminent after the city pulled its objection after provisions were made — including one that made way for a back up buyer — and the county and United States Trustee said they would, too.
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Los Angeles
Bankruptcy court appears poised to confirm sale of Oceanwide Plaza
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