Tuesday, May 07 2013 @ 05:35 PM EDT
Contributed by: Don Winner
Newland International Properties Corp. on Monday asked a Manhattan bankruptcy judge “to limit public access” to the licensing and other agreements that enable the developer to use the Trump name for the 2.8-acre tower overlooking the Pacific Ocean on Panama City’s Punta Pacifica Peninsula.
In court papers, Newland said that if confidential terms such as pricing and fees got out, it would put its use of the Trump name in jeopardy and possibly hurt the Donald himself.
“Exposure of this confidential commercial information would be detrimental to the debtor, its estate and creditors, as well as the Trump parties, who are party to various similar agreements with third parties,” Newland said. “The exposure of such terms would be anticompetitive to their business.”
While Chapter 11 is heralded for its transparency, companies can, and often do, ask to shield confidential and proprietary information from public view.
Court papers do show, however, that Newland owes Trump Marks Panama LLC, from which it licenses the Trump name, $15.3 million.
Newland sought Chapter 11 protection last week with a plan in hand to restructure $220 million in bond debt, which a bankruptcy court will consider approving at a May 28 hearing. The developer defaulted on its bond debt in November 2011 as a result of real-estate woes brought on by the global economic downturn.
Trump Ocean Club opened in 2011 and features 630 condo units and 369 hotel condo units as well as various shops, restaurants and offices. A private beach club is slated for completion this September, and Newland is also currently working on adding a 75,000-square-foot casino to the mix. (Wall Street Journal)