Judge Rejects Promenade Developer's Bankruptcy Plan
SIOUX CITY, IA —
A federal judge has rejected a plan to bring the developer behind Sioux City's Promenade out of bankruptcy.
Civic Partners, which built the movie theater complex, filed for bankruptcy in 2011.
A year ago, it filed a reorganization plan that its lenders, including the city of Sioux City, didn't approve of.
Civic Partners tried to force the plan through anyway, but this week a bankruptcy judge rejected it.
The judge noted that Civic Partners never finished the other retail space in the complex, and that space still isn't ready for tenants today.
This week's ruling is separate from First National Bank's case against the City over loan guarantees the City made.
A judge in that case has ruled taxpayers are on the hook for $1.2 million dollars, because Civic Partners stopped paying back its loan.