Judge OKs Release of Bankruptcy Reorganization Plans

A federal bankruptcy judge has authorized the distribution of disclosure statements that detail three rival plans to reorganize the bankrupt Marina del Rey real estate holdings of developer Abraham M. Lurie.

Lurie, the biggest leaseholder in the county-owned marina, is locked in a battle for control of three hotels, two apartment complexes, shopping centers, office buildings, restaurants and more than 1,100 boat slips in the harbor. All of the properties are operated on public land through long-term leases with Los Angeles County.

Lurie’s Saudi Arabian partner, billionaire businessman Abdul Aziz al Ibrahim, has submitted his own plan to take over the marina empire and reorganize more than $140 million in debts.

A third reorganization plan prepared by the Bank of Montreal will be submitted to creditors for their consideration. The bank financed construction of the high-rise Marina Beach Hotel, which appraisers found is worth about half the $54.6 million owed on the property.

A hearing on confirmation of one of the reorganization plans will be held in December before U.S. Bankruptcy Judge Calvin K. Ashland.

At stake in the proceedings is control of nearly 20% of the entire marina. The properties include the Marina Beach, Marina del Rey and Marina International Hotels, Admiralty and Islander Marina Apartments, Fisherman’s Village, Pier 44, the Marina Beach Shopping Center, and an office complex.