STAR-BULLETIN / 2002
The bankrupt Aloha Tower Marketplace is asking the court to approve a $700,000 line of credit to cover anticipated operating losses.
Aloha Tower seeks The Aloha Tower Marketplace says it needs to borrow up to $700,000 to cover expected operating losses through the next six months.
$700,000 in funding
The line of credit would be
used to cover anticipated
operating lossesBy Russ Lynch
rlynch@starbulletin.comThe owner, Aloha Tower LP, has asked the bankruptcy court to approve the loan, which the company says it has arranged to receive from CIHCO Trinity LLC. That is a partnership controlled by Central Investment Holding Co. The shopping center's general partner, Trinity Investment Trust, owns 14 percent of the lending partnership.
Court documents show that the $700,000 would be a line of credit that Aloha Tower Marketplace could draw on as needed. A hearing on the loan request has been scheduled for Nov. 22.
Aloha Tower LP filed for bankruptcy reorganization in January, saying it had debts of between $50 million and $100 million and assets of $10 million to $50 million. Filed under Chapter 11 of the bankruptcy law, the case allows Aloha Tower LP to remain in charge of the center while it attempts to reorganize its finances, holding off creditors while that is being done.
Built at a cost of $100 million, Aloha Tower Marketplace opened in 1994. It stands on state land controlled by the Aloha Tower Development Corp., a state agency responsible for waterfront development.
Five years ago the developer, Aloha Tower Associates, went bankrupt and its main lender, Mitsui Trust & Banking Co., put the mortgage up for sale. In November 1997 AHI Aloha LP, an investment group including Apollo Real Estate Advisors LP and Trinity Investment Trust LLC, bought the $60 million mortgage for an undisclosed price and took over the 166,000-square-foot waterfront complex.
Through most of its life, the Aloha Tower Marketplace has been the subject of lawsuits and other disagreements between the tenants and the owners. One the main gripes has been lack of parking, which retailers and restaurants in the center say has limited their customer base.
