Friday, May 7, 2010

Albuquerque Studios is Off The Auction Block

From the Albuquerque Journal, by Dan Mayfield

The auction is off.

Albuquerque Studios' parent company, Pacifica Mesa Studios, and its creditors have worked out a deal and the studios will remain under the current management, a company spokeswoman said Thursday.

Nearly three weeks ago, Pacifica Mesa was served with a foreclosure notice on Albuquerque Studios by one of its creditors, Workers Trust Realty II. The company's loan is for an ownership interest in the studio. It is the smaller of two major loans Pacifica Mesa has taken out to finance the $90 million studios.

The bank, in a legal ad taken out in the Journal, said the company owed nearly $21.5 million to Workers Trust and was going to hold a foreclosure auction next Friday. Now, that's not going to happen.

"All of the parties are working together to resolve their differences. Albuquerque Studios continues to operate with current management," said Pacifica spokeswoman Sarah Robarts.
No details on the new arrangement were disclosed.

The bank had said the foreclosure sale was due to "default in the payment of debt and performance." The holder of the loan appoints the managers of Albuquerque Studios.
Pacifica chairman Hal Katersky said Wednesday the loan is one of two the company has on Albuquerque Studios and said he was unaware of any payments due to the bank before the announcement. Representatives of the bank have not returned calls by the Journal.

Katersky said that Pacifica was working with Amalgamated Bank, which holds the larger loan, on restructuring the entire debt. He wouldn't say how much that loan is for.

To read the full article, click here!