SHREVEPORT, La. – Regions Tower, one of downtown Shreveport’s premier office buildings, is now in bankruptcy receivership.
Last week, Wilmington Trust National Association, the trustee for the mortgage company that owns the property, filed a complaint with the court seeking to have the property placed under receivership. The request was granted two days later.
Receivership allows a neutral party to take control of the building and help creditors get a return on their investment.
Regions Tower is owned by California-based Hertz Investment Group L.L.C. Named as defendants in the lawsuit are Plaza Investments II Holdings, LLC and Plaza Investments III Holdings, LLC.
Hertz has a $38.25 million loan for the twin buildings on Texas Street that is in default due to missed payments on utility bills and other operating expenses, failure to keep the buildings in good and safe condition and failure to timely submit financial reports to lenders, according to court documents.
Last month, KTBS reported that SWEPCO planned to cut off utilities to the property because the owner owed more than $366,000, a debt that was then paid by the mortgage company.
In its petition for receivership, Wilmington Trust said it had been notified that the company providing security services to the property was planning to vacate for non-payment.
“The tenant’s actions, or lack thereof, and pattern of failure to promptly pay all utility bills has created a risk of power and other utility services being cut off to the property, creating an imminent detrimental situation without on-site security, with significant impacts on not only the property but also the tenants,” the lawsuit states.
