• Divorce Settlement Line Drives the Dodgers into Chapter 11 Bankruptcy

    Owner Frank McCourt filed for Chapter 11 bankruptcy protection in an answer to Major League Baseball Commissioner’s denial of a television contract. The rejection of the contract invalidated a divorce settlement between Frank and Jamie McCourt.

    Frank McCourt stated for months that the approval of the Fox television contract was crucial for the financial health of the Dodgers. Frank and Jamie McCourt have been fighting over ownership of the team. Jamie McCourt is claiming half of Frank’s assets.

    Commissioner Bud Selig is said to be aghast over a provision in the divorce settlement that diverts almost half of the immediate payment from the television contract for the benefit of the McCourts instead of for the benefit of the Dodgers.

    Selig had intentions of taking over day-to-day operations of the team if payroll for June 30, 2011, had not been paid. McCourts filing Chapter 11 bankruptcy short circuited Seligs plans and has allowed him to retain control of operations for the time being.

    A possibility exists that the MLB will file a motion to seize the Dodgers.

    Some of the outstanding debts include $21 million owed to Manny Ramirez, Andruw Jones is owed $11 million on a 2007 contract and announcer Vin Scully is owed $150,000.

    Benjamin Brand Services – Chicago bankruptcy attorney

  • MetroWest Building in Naperville Facing Foreclosure

    The owner of the Helmut Jahn-designed building missed paying off a $23.5 million loan that came due on May 1. The building is controlled by a joint venture led by General Investment and Development Cos. Occupancy has dropped by at last one third since the company purchased the building in 2006.

    An affiliate of Allstate Life Insurance Co. filed the foreclosure complaint on May 16 in DuPage County Circuit Court. The filing in court means that no foreclosure help is forthcoming for General Investment.

    The 10-story building, which resembles the letter N, was built in 1986 and is visible from the East-West Tollway. Many feel that the building is an unofficial insignia for the city of Naperville.

    The most notable tenant departure is from Minneapolis developer Ryan Cos, who once leased an entire floor at MetroWest. The company moved in November 2010 to a building it developed for Delta Dental of Illinois. Bus operator Laidlaw Transit Inc. and Veolia Water North America Operating Services Inc. have also left.

    Currently the building is 30% vacant, according to real estate data provider CoStar Group Inc. The largest remaining tenant in MetroWest is Dun and Bradstreet, who leases approximately 26 percent of the building.

    The suburban office market is suffering from high unemployment rates, prompting tenants to downsize office space. Other tenants move to other buildings that offer low rents. The trickle down effect is causing landlords to struggle with making monthly loan payments or refinance loans when they mature.

    If you are seeking legal assistance with a short sale or foreclosure, contact a Chicago short sale attorney to help with your situation.