Farrell loses office building in bankruptcy settlement

An office complex previously owned by Vice Mayor Edward Farrell is now under new ownership after a settlement agreement with Great Western Bank was reached last month in a bankruptcy case that began in January.

Farrell filed for Chapter 11 bankruptcy on Jan. 31 on behalf of his business, Maricopa Manor Business Center LLC. Great Western Bank now owns the center, which is located at John Wayne Parkway and Garvey Avenue.

Chapter 11 bankruptcy, in general, allows a debtor to devise an agreed upon plan to restructure his or her finances and remain in business. In this case, however, the parties involved agreed upon a settlement rather than a reorganization plan.

Great Western Bank, which is one of the center’s tenants, held a lien on the office complex plus other properties owned by Farrell and his mother, Alma Farrell. Those other properties included the Headquarters Café restaurant, located just south of the business center on John Wayne Parkway.

The Dunn Family Revocable Living Trust holds a second lien on the office complex property.

Farrell’s business defaulted on three loans with Great Western Bank in 2011. At the time, the property was scheduled to go to public auction but, after several months of talks, the issue was resolved and loan modifications were made.

According to court documents, Great Western Bank scheduled a foreclosure sale of the office complex prior to the Chapter 11 petition being filed, but it was put on hold once the petition was filed.