Joffco Square seeks Chapter 11 reorganization

Chicago Northbrook, Ill.-based River West Plaza-Chicago has filed a Chapter 11 petition for bankruptcy protection from creditors and a reorganization plan in U.S. Bankruptcy Court on behalf of its principal asset, the 95,000-sq.-ft. Joffco Square retail center at 555 West Roosevelt Road in Chicago.

“This could be one of the quickest Chapter 11 reorganizations in this district,” said Forrest B. Lammiman, a partner who heads the restructuring and bankruptcy practice of Meltzer, Purtill & Stelle LLC, the law firm representing the petitioner.

According to Lammiman, the reorganization plan provides for its approximately 30 trade creditors to be paid in full with interest and that the terms of the company’s $26,158,002 acquisition and construction loan, which matured on Nov. 1, be renegotiated with Bank of America, N.A.

The West Roosevelt Road property was acquired in 2003 by River West and has since been developed into a five-story, 95,000-sq.-ft. retail center that opened March 2008 with 72,482 sq. ft. leased to Best Buy and Bed Bath and Beyond.