Bankruptcy complicates Tanger Outlets proposed new Texas center

By Laura Elder -The Daily News

Plans for the League City outlet mall are complicated by issues involving the land where Greensboro, N.C.-based Tanger wants to build. In January last year, Compass Bank sued Sonrisa Realty GP LLC and Sonrisa Properties Management and the companies’ president, Randal Hall, for a defaulted $8.2 million loan guaranteed by Hall. At the time, the Sonrisa companies owned more than 100 acres, including the 35-acre tract earmarked for the outlet center. But the bank couldn’t proceed with a Jan. 5, 2010, foreclosure sale because the Sonrisa companies had filed for Chapter 11 bankruptcy protection.

Reorganization plans Sonrisa filed included the sale of 35 acres to Tanger, according to bankruptcy documents. Subject to bankruptcy court approval, Tanger agreed to a contract allowing it to buy the land for $250,000 an acre, a total price of $8.7 million, if Tanger decided to proceed with the purchase after a one-year study period. Compass Bank objected to Sonrisa’s plan to sell the land to Tanger.

Last week, Bruce Ruzinsky, an attorney for Compass, said the bank had gotten court approval of a plan to liquidate Sonrisa Realty that includes an auction sale by Tranzon of about 95 acres, including the 35 acres sought by Tanger.

It’s possible Tanger could attempt to buy the 35 acres through the auction. The bankruptcy court has scheduled a hearing today to determine the date and time of the auction. Hall could not immediately be reached for comment.