Real estate magnate gets reprieve

Downtown landlord Meruelo Maddux, still in bankruptcy protection, has reached a settlement with one of its creditors, says the WSJ. As part of the deal, Legendary Investors Group will assume ownership of seven unnamed properties in exchange for debt. From the Journal (h/t Curbed LA)

As part of the agreement, Legendary and fellow lender East West Bancorp Inc. will drop their rival takeover plan that would have pushed out the company's senior management, including Chief Executive Richard Meruelo. Legendary had earlier acquired all of East West's interest in Meruelo Maddux loans. The deal removes a major road block to Meruelo Maddux gaining court approval of its Chapter 11 plan, which keeps existing shareholders in control and repays creditors either through the sale of the properties or a refinancing of their debts. A plan confirmation hearing is scheduled for Thursday.

Maddux still faces a challenge from another major shareholders group.