On February 24, 2012, U.S. Capital/Fashion Mall, LLC, and its parent company, U.S. Capital Holdings, LLC (collectively, “U.S. Capital”), filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the Southern District of Florida. U.S. Capital owns the Plantation Fashion Mall in Broward County, Florida. According to the company’s Chapter 11 Case Management Summary (the “Summary” or “Summ.”) filed with the Bankruptcy Court, U.S. Capital owns what it describes as a “major regional retail mall and office building located at the geographic center of Broward County …” Summ. at *2.
Events Leading to Bankruptcy
U.S. Capital and its insurers have been involved in six years of coverage litigation following damage sustained by the mall during Hurricane Wilma. The company contends that hurricane damage it sustained from Wilma caused it to lose one of its major anchor tenants. In addition to hurricane damage, U.S. Capital was also forced to deal with fire safety issues which the company believes were left behind by the mall’s previous owners. Ultimately, the City of Plantation forced the mall to cease operations and terminate its leases. Summ. at *2.