Developer Ted Mazola has agreed to end a bitter bankruptcy fight over a failed South Loop condominium project by handing the property over to its lender.
The lender, a venture that includes Los Angeles-based Oaktree Capital Management L.P., would drop a foreclosure suit against the 176-unit development at 1555 S. Wabash Ave. if a judge signs off on the agreement, which was filed Monday in U.S. Bankruptcy Court in Chicago.
The project led by Mr. Mazola and partner Gus Mauro was caught by the condo crash, leaving the developers with 140 unsold units, unable to pay off a $46.2-million construction loan held by the Oaktree venture. The duo put off their day of reckoning in December, when their venture filed for Chapter 11 protection. They have been renting out the unsold condos to generate income.