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L.A. County Bar Nears Accord Enabling Avoidance of Bankruptcy Filing
By a MetNews Staff Writer
The Los Angeles County Bar Association appears to be nearing a settlement that will enable it to avoid declaring bankruptcy, the prospect of which had emerged in light of its past-due rent on premises it has now vacated.
LACBA’s Board of Trustees, meeting via Zoom in a special session on Thursday, accepted a proposal by Jamison Properties, owner of the building at which LACBA had leased space—but with an added condition: that it be able to obtain a Paycheck Protection Program (“PPP”) loan, available to businesses that continue their operations during the pandemic.
LACBA’s executive director, Stanley Bissey, said Friday:
“We are waiting on signatures—the agreement is with Jamison, once they sign I’ll sign for LACBA and deliver to their offices.”
It was announced Friday by the Council of Sections, an oversight group, that the settlement amount will be $2.4 million, according to the following schedule:
•$340,000 payment five days after receipt of PPP loan;
•$500,000 60 days after the receipt;
•$160,000 120 after receipt;
•1.4 million paid over 96 months from the execution of the agreement, at a rate of $14,583.33 per month.
LACBA had leased two floors of the building at the northeast corner of Seventh and Bixel streets but, even before the pandemic, had use for only one floor, and was unable to sublease the other floor. Although the lease does not expire until March 31, 2026, LACBA moved out, on its own accord.
It had not paid rent since March and announced in December that, with $1.1 million owed to Jamison, it was contemplating Chapter 11 bankruptcy.
LACBA’s offices are now located at 200 S. Spring Street, in the 1896 Wilcox Building at the corner of Second and Spring Streets, two doors north of the METNEWS offices, in that same building. The building has also served as the home of the California Club, Southwestern University School of Law, and the Los Angeles Daily Journal.
Copyright 2021, Metropolitan News Company