The U.S. Bankruptcy Court in Broward County, Fla., has approved the bankruptcy plan of a developer controlled by the Federal Deposit Insurance Corp.
The plan will leave BankAmerica Corp. and Chase Manhattan Corp. with substantial losses.
Under the plan, Cenvill Development Corp. will sell its Century Village at Pembroke Pines for about $62 million to a real estate investment trust.
To get BankAmerica and Chase to agree to the plan, which gives the banks no stake in the Pembroke Pines sale, FDIC-appointed management said it would not delay the bank's seizure of less valuable Cenvill assets, sources said.
BankAmerica and Chase hold more than $170 million of debt secured by other Cenvill projects. The plan will take effect next week if no further objections are raised.
The buyer is a real estate investment trust controlled by H. Irwin Levy, the developer who sold Cenvill to a bank that later was closed by the FDIC.
The sale includes the settlement of debt secured by the project and a $2.8 million note to Cenvill.