Here it is, Pete:

First National Center owners seek dismissal of Chapter 11 bankruptcy
by Brianna Bailey
Published: April 11th, 2012

OKLAHOMA CITY – The owners of downtown’s First National Center are asking the court to dismiss their Chapter 11 bankruptcy as they struggle to find a lender willing to finance a $12 million settlement with Capmark Bank that would allow them to keep the 33-story art deco tower.
Under the terms of their settlement with Capmark, First National’s owners have until May 27 to give the bank $12 million in cash to release them from a mortgage on the property. If the money doesn’t materialize, First National will be placed in receivership.

First National’s owners already have put up a $1 million deposit as part of their settlement with Capmark, but don’t have the rest of the money on hand and have been unable to find a willing lender, according to court documents.

In a motion filed April 5, First National’s Los Angeles-based owners said banks have been reluctant to lend them the money to finance the deal while the historic downtown property lingers in bankruptcy.

“Each of the potential lenders that the debtors have approached has indicated that it cannot provide the debtors with takeout financing unless and until the debtors have dismissed their Chapter 11 bankruptcy cases and the property is out of bankruptcy,” First National’s owners said in the court filing.

First National’s owners also said in court documents that it has been a challenge to find new tenants while the building has been in bankruptcy.

“The debtors believe that prospective new tenants are extremely uneasy about moving into a property which appears to be on the brink of foreclosure and which may change ownership or management at any given moment,” First National’s owners said in the court filing. “The debtors believe that the dismissal of their bankruptcy cases will alleviate these types of concerns by prospective new tenants and help the debtors attract new tenants to the property, which would increase the debtors’ rent revenue and ultimately improve the debtors’ ability to pay their outstanding debts.”

In their court filing, First National’s owners said they believe Capmark Bank plans to fight their request to have the Chapter 11 bankruptcy dismissed.

However, Rob Robertson, an attorney representing Capmark, said the bank hasn’t made up its mind yet whether or not it will oppose First National’s motion to dismiss the bankruptcy.

“Initially we were not in favor of it, but once they filed the motion, it caused Capmark to reconsider its options,” Robertson said. “A decision hasn’t been made yet.”

The partnerships First National Building I and First National Building II, both associated with Los Angeles-based Milbank Real Estate, bought the First National Center in 2006 for $21 million.

Both entities filed for Chapter 11 in October 2010 after Capmark Bank attempted to foreclose on the property and appoint a receiver to take over operations at the downtown center.

First National’s owners are confident that they can exit bankruptcy and resume renovations on the building, Milbank Real Estate CEO Aaron Yashouafar said in a written statement.

“The ownership is pleased that it has been able to resolve its differences with the lender and that in fact an amicable resolution was reached,” he wrote. “With the issues resolved with the lender, the ownership of First National Center is prepared to come out of bankruptcy and continue its effort toward renovating and upgrading this historical icon of Oklahoma City.”