Wednesday, July 24, 2024
Happening Now

“New” Entity Takes Over Shoppes At Eagle Pointe Project

The Cookeville Industrial Development Board refinanced the Shoppes at Eagle Pointe project Friday morning.

A lease between the board and Shoppes at Eagle Pointe LLC for the entire property was signed in 2017. Attorney Kent Moore said the leasing entity filed for bankruptcy, created a new group and now has a new lender.

“The lender’s requirements are for this new entity, of course it is going to acquire the project, but the original entity Shoppes at Eagle Pointe has to be let off the hook,” Moore said. “We can’t have two companies liable for the debt. They want only the new company liable for the debt.”

With the board’s approval, Moore said the “new” group comprised of the same members will be responsible for the debt.  The company’s name is Shoppes at Eagle Pointe SPE.

Moore said the acronym stands for Special Purpose Entity. Moore said this means the new entity must have lender approval to file bankruptcy.

“So if they are performing okay, then you can’t file bankruptcy for bankruptcy protection without lender consent,” Moore said. “Of course, the lender is not going to let them do that.”

Moore said the new entity is an improvement based on the financing. Moore said the loan is now $40 million, a $10 million increase. Moore said the shopping center will still have the same operators, so no changes in business is anticipated.

Economic & Community Development Coordinator Meinda Keifer said the city does not know what the loan would fund. There is one out parcel left on the property yet to be developed.

Moore said the action of the board will bring a referendum to the lease to add the new entity.