Graffiti towers agreement clears a path for cleanup

Core Viewpoint - The Oceanwide Plaza development, known as the Graffiti Towers, is moving closer to a potential sale following a bankruptcy exit agreement approved by a federal bankruptcy judge, resolving disputes among creditors [1][2]. Group 1: Bankruptcy and Legal Proceedings - The bankruptcy exit agreement aims to end "value-destructive litigation" and allows Oceanwide to focus on selling the project, which is a priority for the city, especially with the upcoming 2028 Olympic Games [2]. - The settlement resolves various legal battles among creditors regarding repayment order, claim amounts, and establishes a framework for a consensual chapter 11 plan and sale [4]. - Under the agreement, L.A. Downtown Investment LP will receive a claim of $230 million, while mechanics liens held by Lendlease (US) Construction Inc. and DTLA Funding LLC total $168 million [4]. Group 2: Project Details and Future Prospects - Oceanwide Plaza was initially envisioned as a significant mixed-use development, including over 500 condos, 180 hotel rooms, and nearly 170,000 square feet of retail space [6]. - The location is considered highly attractive, situated in the heart of Los Angeles' entertainment and sports district, which enhances its draw power [6]. - A potential investor is currently in discussions to acquire the property, contingent upon the resolution of the bankruptcy [3].