The owners of Rockville Mall, who recently filed for Chapter 11 reorganization, have begun negotiations with its principal lender in an attempt to resolve the bankruptcy.
The mall's owner, Rockville Mall Associates L.P., signed a 30-day agreement with Marine Midland Realty Credit Corp. on the use of cash collateral held by the bank, said Roger Frankel, an attorney for the limited partnership.
"We worked out an agreement before the bankruptcy filing so there would be no disruption at the mall," he said. "If we come to an agreement in 30 days, there will be a routine hearing."
Marine Midland, based in Wilmington, Del., filed foreclosure documents last spring against the limited partnership, which owes the bank $39 million.
Rockville Mall Associates in its petition listed $5,178,614.75 in claims held by its 20 largest unsecured creditors. Among them is a disputed $1,278,300.80 claim held by United Artists, which operates movie theaters in the mall.
The lease called for United Artist and Rockville Mall to pay for construction of the theaters. The dispute is over the allocation of those construction costs, Frankel said.
Glen Construction of Gaithersburg holds a claim of $2,996,278.