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Tuesday, April 18, 2000

Executive Centre
transfer to Citibank

By Peter Wagner


A plan to transfer ownership of downtown high-rise Executive Centre to creditor Citibank N.A. has been put on a fast track, with a confirmation hearing scheduled next month in U.S. Bankruptcy Court.

With no major objections to the plan, U.S. Bankruptcy Judge Lloyd King yesterday set a confirmation hearing for May 15.

The 41-story property -- including a 120-room Aston hotel, 379 residential units, and Long's Drugs, Ross Dress For Less and other retail outlets -- was owned by MKS Executive Partners, a holding of Indonesian investor Sukamto Sia.

The property is now under the control of a federal bankruptcy trustee overseeing the liquidation of Sia's assets in Hawaii and around the world.

Sia filed for bankruptcy in November 1998. A separate Chapter 11 bankruptcy was filed for Executive Centre in December as an alternative to a pending foreclosure suit against MKS by Citibank.

Under a bankruptcy reorganization plan for the property, Citibank would reduce outstanding mortgage debts on Executive Centre from $56.6 million to $39 million and take an 80 percent share in the property. Executive Centre was recently appraised at $39.5 million. If confirmed, the refinancing plan would contribute about $500,000 to Sia's personal bankruptcy estate while MKS Executive Partners would hold a 10 percent stake in the property.

Remaining interest would be split among unsecured creditors and a British Virgin Islands company.

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