Printable VersionWolford Development Inc., the company that developed and owns The Shops at Lake Havasu, is no longer in control of the property.
Wolford Development Inc., based in Tennessee, did not return messages seeking comment or further explanation of the situation Wednesday.
David Jewkes, the executive director of Receiverships/Management Service for Commerce TNP, LLC, is now in control of the property, as appointed by the court.
Jewkes, based in Las Vegas, did not return a message late Wednesday afternoon.
Alabama-based Regions Bank, the financial lender for The Shops, filed a civil suit in Mohave Superior Court Aug. 20 requesting the receiver.
The Phoenix-based law firm representing Regions Bank, Snell & Wilmer LLP, did not return two messages seeking comment or further explanation of the situation Wednesday.
Madeleine Wanslee, an attorney with Phoenix-based law firm Gust Rosenfeld PLC, said the “lender is probably owed money and the mall has not paid that money so they are delinquent.”
Wanslee sits on the State Bar of Arizona’s executive council for bankruptcy. Neither she nor the law firm she works for is affiliated with The Shops at Lake Havasu’s civil court case.
Today’s News-Herald asked for the State Bar’s assistance to help explain receivership and was directed toward the bankruptcy council. Wanslee provided a basic legal explanation of a receiver situation.
Wanslee said typically in these cases of receivership, the owners are delinquent, but continuing to collect rent, but “meanwhile they are not paying their debts associated with the property.”
The lender then asks the court to appoint a receiver to take control of the property, to collect the rent and to preserve the property, Wanslee said.
“Generally, it’s in connection with a foreclosure process,” she said.
Wanslee said three typical outcomes of a property being in receivership include the property owners amending their debts, starting a foreclosure process or bankruptcy.
She said amending the debts or bankruptcy were typically the only ways property owners could regain control of their property.
“It has to be a pretty serious thing in order to appoint receivers,” she said. “Getting a receiver appointed is pretty expensive. It’s not a small undertaking. It is a big thing.”
Several managers of retail shops at the city’s only major outdoor shopping plaza — including one major retailer — said Wednesday they had not heard of the court case. The retailers declined to be named.
Gary Kellogg, president and CEO of the Lake Havasu City Partnership for Economic Development, was on vacation Wednesday and unavailable for comment.
Lisa Krueger, president and CEO of the Lake Havasu Area Chamber of Commerce, said she learned about the receivership Wednesday morning but did not know further details.
Wolford Development, Inc. started opening shops in March 2008, including Dillard’s, JCPenny, UltraStar Cinemas, Wal-Mart and smaller retail shops.
You may contact the reporter at jleatherman@havasunews.com
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