Meadowlands Xanadu, the unfinished $2 billion New Jersey shopping mall designed with an indoor ski slope and a Ferris wheel, was taken over by lenders from a group led by Colony Capital LLC after construction stalled.
The lenders are negotiating with new developers to complete the project, the group said Tuesday. The creditors, including Credit Suisse Group AG, Capmark Financial Group Inc. and an affiliate of Fortress Investment Group LLC, had given the Colony-led group until Monday to raise additional equity, four people with knowledge of the matter said last week.
Xanadu, which is sited about 10 miles west of Manhattan in East Rutherford, has been plagued by delays since construction began five years ago.
Colony and investors including Dune Capital Management LP took over the project from Mills Corp. in 2006, agreeing to invest $500 million and arrange $1 billion in financing. Development ran into trouble after lender Lehman Brothers went bankrupt in 2008.