City reaches pact over Queen Mary
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Long Beach has reached an agreement potentially worth $9 million that would settle a rent dispute between the city and the operator of the Queen Mary harbor tourist attraction.
The pact between the city and Queen’s Seaport Development Inc., which filed for Chapter 11 bankruptcy protection in March 2005, must still be approved by a bankruptcy court judge.
The agreement, however, is expected to clear the way for a court-appointed trustee, Howard M. Ehrenberg, to push ahead with a sale of the company and its main asset: the long-term lease with the city to operate the Queen Mary.
In a statement, Long Beach officials called the agreement a first step toward redeveloping the Queen Mary site.
Under the agreement, upon sale of the company, Long Beach would be eligible for a $4.9-million “priority cash payment” and $4.1 million from an unsecured claim against the business.
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