The intention is to keep operations continuing as normal at Sandburg Mall in Galesburg.
That’s according to the legal team representing the mall’s managing company in a recent Chapter 11 Bankruptcy filing.
The documents indicate Sandburg Mall Realty Management is seeking a reorganization of the company – something Mayor John Pritchard says will hopefully make them a stronger entity.
Declaring Chapter 11 Bankruptcy differs from Chapter 7 Bankruptcy: which would involve a full liquidation of the company’s assets.
Sumner Bourne of Rafool, Bourne, and Shelby, P.C. out of Peoria tells WGIL there’s very little he can disclose about the case at this point.
“The mall is going to continue to operate as normal, it’s seeking to restructure its debt, there was a hearing on Tuesday in which the parties, the lenders agreed to the use of cash collateral for the mall to continue to operate as normal and that’s what the current intention is,” says Bourne.
The filing was made last week in the court’s central Peoria district. According to the documents, Sandburg Mall is claiming between $1-million and $10-million in assets, but that same range is being given for its liabilities.
Bourne says it is still early in the case, but says his client’s current intention is to keep tenants and customers satisfied.