The developer of an industrial park in Kapolei that filed for bankruptcy in April anticipates being able to finish the project and pay off its debts if Central Pacific Bank extends a roughly $23 million loan for three years.
LV Kapolei 54 LLC, which is developing the second phase of Kapolei Business Park, submitted a reorganization plan on Friday proposing the loan extension.
Other parts of the plan include the developer paying off other creditors in full and contributing $1.7 million to advance development of the industrial lots in the 54-acre project.
LV Kapolei 54, led by Paul Lambert and Mark Whiting of Lokahi Ventures LLC, filed for Chapter 11 in April to stave off a foreclosure auction sought by Central Pacific. Debts totaled about $24 million.
The company, which bought the property in 2005, had expected to spend around $20 million to develop the site with infrastructure for industrial business buyers, but held back on the plan a few years ago as the economy weakened.
The new plan would give LV Kapolei 54 three years to develop and sell parcels to repay the loan. Central Pacific would be able to auction off any unsold units if its loan isn’t repaid by the end of the extension period.
Adopting the plan is subject to a vote by creditors and approval of a bankruptcy judge.