PROVIDENCE, R.I. (WPRI) — Providence Place has been ordered into receivership, a state-level version of bankruptcy, after its largest private lenders alleged the company that manages the mall owes $259 million, casting a question mark over the future of the state’s largest shopping center.
Target 12 has learned that R.I. Superior Court Judge Brian Stern has granted a petition for receivership filed by U.S. Bank National Association, which represents multiple lending entities for the mall.
Joseph DiOrio, a well-known bankruptcy and creditors attorney representing the lenders, outlined the request in documents filed in court earlier this week.
He alleged the mall’s management company, Brookfield Properties, borrowed $305 million from the lenders in 2011 through the corporation GGG-Providence Place LLC.
A loan extension was agreed to in 2021, but lending documents submitted in court show the management company fell into default when the loan matured in May. As of Oct. 28, DiOrio alleged GGG-Providence owed $259 million, excluding fees and other costs.