In brief: Chapter 11 | Muvico | AutoZone

By Staff, Nov. 03, 2009

Brothers’ venture files Chapter 11

R&G Properties, a venture of brothers George S. Michael and Robert C. Michael, filed for Chapter 11 bankruptcy protection last month. In its petition, Chicago-based R&G estimated its assets at no more than $50,000 and its liabilities at $10 million to $50 million. The largest unsecured creditor is a Hinsdale woman who is owed $400,000, according to the petition, filed in U.S. Bankruptcy Court in Chicago. A lawyer with the firm representing R&G in the case declines to comment. Related story: Banker brothers hit with foreclosure suits

B of A raises ‘concern’ about new Block 37 movie operator

In a court filing Monday, a Bank of America Corp. executive says the lender has “additional concern” about recent news that three top executives with the Muvico theater chain have left to start a new firm, Paragon Entertainment LLC, that is to operate the planned Muvico theater at Block 37. “The theater space has always been presented by the borrowers to the lenders based on the experience and reputation of Muvico as a company,” B of A Senior Vice-President Gary Katunas says in a sworn statement. He calls the news “a significant change for the project and it is a matter of additional concern for Bank of America.” Muvico announced Oct. 23 that former CEO Michael Whalen was leaving to form Paragon and would take over three new Muvico projects, including Block 37. Mr. Whalen said in an interview Tuesday that the original Block 37 lease signed in 2008 was with Paragon, which he says was essentially Muvico’s affiliate development arm. “This is not an issue,” says a Freed spokeswoman. “The Muvico lease is moving forward.”

Architecture firm Pappageorge/Haymes moves office

Chicago architecture firm Pappageorge/Haymes Ltd., which became well known for designing residential skyscrapers in the South Loop, has moved its office to a bigger River North location at 640 N. LaSalle St. The firm signed a 10-year lease for the 12,000-square-foot space. The firm previously leased about 10,000 square feet at nearby 814 N. Franklin St. The new space puts the firm all on one level with essentially one large studio, says partner David Haymes, while the firm formerly was spread over two levels in four separate studios. The 40-person firm has been diversifying into more master planning work along with public housing, institutional/educational assignments and office interiors. CB Richard Ellis Inc.’s Finley Brown represented Pappageorge/Haymes.

LG Electronics renews in Romeoville

LG Electronics USA Inc. renewed its 408,966 square feet in the industrial building at 875 Crossroads Parkway in southwest suburban Romeoville. LG signed a short-term extension, said Frederick L. Regnery, a senior vice-president at Colliers Bennett & Kahnweiler who represented New Jersey-based LG. He declines to disclose further details. Indianapolis-based Duke Realty Corp., which owns the 528,218-square-foot building in Park 55, was represented in-house by Vice-president Susan Bergdoll of the Rosemont office. The building is LG’s Midwest distribution center.

AutoZone plans Northwest Side location

Auto parts retailer AutoZone Inc. signed a 25-year ground lease for a site in the North Center neighborhood where it plans to build a new store. Memphis, Tenn.-based AutoZone plans to tear down the two vacant buildings on the 25,000-square-foot parcel, says Steve Schwartz of Chicago-based Baum Realty Group, which represented the property owner. The store, to be at 3701 N. Western Ave., is scheduled to open next spring, Baum says in a release.