A New Orleans bank is trying to force the firm behind the 36-acre River Park development, long planned along Baton Rouge’s riverfront downtown, into Chapter 7 bankruptcy.
First NBC Bank filed documents in the U.S. Bankruptcy Court of the Middle District of Louisiana on July 11 instituting involuntary bankruptcy proceedings against River Park Development LLC.
According to the original petition, the bank has a claim of at least $50,001 against the limited liability company and alleges that debts are not being paid as they become due.
Calls to River Park developer Pete Clements were not returned.
U.S. bankruptcy code allows lenders to force companies into bankruptcy under certain circumstances. Involuntary bankruptcy does not immediately put a company into bankruptcy. A company may continue to operate as if nothing has been filed against it.
Originally slated to break ground seven years ago, the project was supposed to open the door for a potential $600 million in economic development for downtown Baton Rouge, Downtown Development District Executive Director Davis Rhorer told Daily Report in 2009.
Hotels, live music venues, restaurants and residences were supposed to be located on the land, situated just north of Hollywood Casino. The project never got off the ground.
The legal fight between First NBC Bank and River Park Development LLC has been underway for some time.
Earlier this year, the bank—seeking $9.3 million it claims it is owed—sought to have the development’s land seized and sold during a public sheriff’s auction. The auction was set for June 29, but was put on hold after River Park Development LLC filed courts documents to successfully stop it.
Gregory St. Angelo, First NBC Bank’s attorney, says the inventory petition was filed in response to the halted auction.
“We were of the opinion that the wheels of the justice will turn faster in the bankruptcy court than in the 19th Judicial District,” he says..
—Alexandria Burris
