Oceanwide Holdings Co. Ltd.'s total debt to subcontractors working on the over US$1 billion Oceanwide Plaza mixed-use complex in downtown Los Angeles swelled to nearly US$98.6 million since the project's construction was disrupted in January, Curbed Los Angeles reported, citing publicly available real estate records.
Borrowings related to the development of the condominium, hotel and retail complex grew to the current level because of nine active mechanics liens. The figure, according to the publication, does not include the mechanics lien owed to LendLease Group, which serves as the general contractor for the project.
LendLease was cited in the March 21 report as saying that the January suspension of works was due to Oceanwide Holdings' failure to pay all contractors working on the development. The Beijing-based conglomerate, on the other hand, said it needed to halt construction to "restructure capital."
Works at the project, considered one of the most expensive in the city, is now slowly moving amid its growing debt, a representative from Oceanwide Plaza confirmed. It is unclear if the 2020 completion target is still on track after construction was disrupted.