Lawsuit Claims Macomb Mall Needs $42M To Avoid Closure

Published On: Oct 02 2011 03:57:39 PM EDT
Updated On: Sep 29 2011 10:52:28 AM EDT
ROSEVILLE, Mich. -

According to a lawsuit, the Macomb Mall is in deep financial trouble.

The mall, which has been open since the 1960s, could be closing soon thanks to a loan default.

The plaintiff is the mall's creditor, Gratiot Avenue Holdings. The holdings company says in the lawsuit that the defendant, Macomb Mall, is in default of the terms of the loan and has failed to pay all sums due and owing on the note at the time it mature on June 11.

The amount owed is $42 million, according to the lawsuit.

The filing also states that "the defendant has been unable to pay its utility and service bills and may have to shut down Macomb Mall."

The creditors demand that the mall turns over all of its rent receipts and wants the court to appoint a receiver -- a new management company that would protect the asset while they try to turn the mall around.

Stefan Friedman, a spokesman for Thor Equities, which owns Macomb Mall, said the company is current in all interest payments and are in discussions with lenders about the loan.

The attorneys representing the creditors refused to respond to Local 4's request for comment.

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