Charlotte, North Carolina’s EpiCentre has field for Chapter 11 bankruptcy and was approved by Bankruptcy Judge George Hodges within 20 minutes. The day prior to their Chapter 11 approval, the entertainment and retail center filed their papers in court.
Pacific Avenue, LLC and Pacific Avenue II, LLC were founded solely to own and manage the EpiCentre. The entities sought Chapter 11 bankruptcy protection in order to block a “wrongful foreclosure” of their property as well as to reorganize their debt and develop financial strategies.
Prior to court filings, Regions Bank got the foreclosure process ball rolling when the two companies, “failed to make timely payments of the debt upon maturity of the note.” Both Pacific Avenues borrowed roughly $90 million against their property.
Consequently, Regions Bank shows in various court documents an estimated $87.8 million is due on the loan—in addition to another $6.1 million from a past swap transaction. Regions Bank presently owns the largest unsecured claim ever—a whopping $87,064,076, which both companies’ manager, denies vehemently.
Afshin Ghazi, manager of both entities and founder of a Charlotte development firm, The Ghazi Company, was allowed by the judge continued access to both companies’ bank accounts as well as the EpiCentre’s cash management system.
Pacific Avenue is owned by EpiCenter Associates, LLLP of Charlotte while Pacific Avenue II is owned by Ghazi Properties, NC, LLC, Main & Main, LLC and Promenade Management, Inc. Incidentally, Pacific Avenue and Pacific Avenue II had separate filings.
The filings state EpiCentre owners are “…unable to meet their operating expenses and will be forced to cease operations immediately.” A good majority of their vendors are “cash only.”
Also in the filings, it is mentioned Afshin Ghazi and his investors believe the two entities have over 100 creditors. Over $93 million in claims is presently being held against the property. Yet, both companies project their assets to be under $50K.
If you are someone you know is dealing with bankruptcy issues or is thinking of filing for bankruptcy, it is imperative to contact an attorney who can best work for you.