A Bankruptcy Court judge Wednesday approved a settlement between the Chicago Spire developer and its largest creditor, according to reports.
The settlement gives Garrett Kelleher as long as a year to come up with the more than $100 million he needs to get the project out of Chapter 11, according to Crain’s Chicago Business.
The Crain’s report says that the agreement calls for Kelleher’s development venture to pay the creditor, a venture led by New York-based Related Cos., $109 million by Oct. 31. The agreement also includes an option to extend payment to March 31, 2015, but the amount would be higher at $114 million.
The money would pay off Kelleher’s creditors, allowing the Spire development site to exit bankruptcy, according to Crain’s. He would still need financing to construct the 150-story, 1,194-unit project at 400 N. Lake Shore Drive.
U.S. Bankruptcy Court Judge Janet Baer approved the settlement Wednesday afternoon pending final paperwork. The Irish developer and Related announced the deal in principle earlier this month after Related acquired debt on the Spire site and filed an involuntary bankruptcy petition, the Crain’s report says. Related has said it would not build the Spire if it gained control of the site, and Kelleher has brought in a third party, Chicago-based Atlas Apartment Holdings LLC, to secure $100 million in financing to get the Spire out of bankruptcy, according to Crain’s.