Manoa center refinances debt

Manoa Marketplace's owner
calls a recent foreclosure action
the result of a misunderstanding

The owners of Manoa Marketplace say they have found new financing that will end a foreclosure action against them by their previous lender, GE Capital Hawaii Inc.

M/V Investment Partners LLC said it has completed a refinancing arrangement with Bank of Hawaii and all loans owed to GE Capital have been repaid.

GE Capital and its attorneys could not be reached for comment late yesterday.

Ralph Gray, manager of M/V Investment Partners, made the announcement in a statement issued though the law offices of Watanabe Ing Kawashima & Komeiji, his lawyers.

"I'm pleased that the refinancing has been completed and that all misunderstandings with the prior lender have been cleared," Gray's statement said.

In a foreclosure action filed in Circuit Court last month, GE Capital said nearly $15 million was past due and owing from M/V Investment Partners. GE wanted the property seized and sold to pay off the debts.

As of late yesterday, no documents were in public record in Circuit Court showing the action had been dismissed, but Gray's statement said it had been dismissed. Gray said the whole lawsuit resulted from a misunderstanding concerning a single promissory note for $250,000 issued by Cherrywood-Manoa LLC, one of the companies involved with M/V Investment in the property's ownership.

M/V Investment Partners owns the Manoa Marketplace buildings, which house a Longs Drug Store as well as Japanese, Italian and Korean restaurants and arts and crafts and coffee shops.

The land is owned by an unrelated company, Manoa Shopping Center Inc., which has declined to comment beyond saying that all the ground leases are current.

GE Capital Hawaii said in court records that it financed the development of the shops with a $9.5 million first mortgage in 1992 and later made other mortgages and loans backed by notes.


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