6. The owners of Lee’s Landing Garage, one block south of Beale Street, managed to block the foreclosure sale Thursday of the parking garage and strip of nightspots.
The auction on the steps of the Shelby County Courthouse at noon was delayed five times until 2 p.m.
Rowlett Scott, the attorney representing Sun Life Assurance Co. of Canada in the foreclosure, was reading the foreclosure notice on the steps when word came by cell phone that Sun Life and Lee’s Landing Garage LLC had reached a settlement.
One of those in contact with Scott by cell was Michael Marshall, the attorney for Lee’s Landing Garage LLC.
“I really can’t say what the sum of money is other than to say we have brought Sun Life current on their debt and are working to reorganize the company and make it a profitable going concern,” Marshall told The Daily News. “We have brought Sun Life current.”
Meanwhile, just before the noon deadline, Lee’s Landing Commercial LLC filed for Chapter 11 federal bankruptcy protection according to The Daily News Online, www.memphisdailynews.com. The company, whose president is Beale Street developer John Elkington, leases the spaces on the ground floor of the parking garage now occupied by several nightspots. The chapter 11 filing allows reorganization efforts that permit the businesses to remain open.
Marshall said the bankruptcy filing affects the owners’ plans “only to the extent that instead of going through Circuit Court to get at the assets that we believe belong to us, that we go through the bankruptcy court.”
The bankruptcy filing estimates the assets of Lee’s Landing Commercial LLC at between $1 million and $10 million. Liabilities are estimated in the same dollar range.
The list of creditors includes Elkington, who is claiming a $20,000 loan. His Performa Entertainment Real Estate LLC is another creditor with two loans totaling $422,611.98.
Lee’s Landing Garage LLC is claiming $900,000 is owed in trade debt.
Elkington and Lee’s Landing Garage President Michael Dumas and Vice President Steve Sallion have been at odds over the management of the southward expansion of the Beale Street entertainment district. Elkington left in a reorganization of the company’s leadership.
Sun Life filed the foreclosure notice and still has a motion pending in Chancery Court for appointment of a receiver after it claimed Lee’s Landing Garage defaulted on a $5.9 million promissory note.
Read more about the Lee’s Landing proceedings in Monday’s edition of The Daily News....