FORT LAUDERDALE, FL—In a much-anticipated decision, Judge John K. Olson of the U.S. Bankruptcy Court of the Southern District of Florida has ruled on the auction sale of the Plantation Fashion Mall. His decision: sale of the 32-acre site on University Drive can move forward at the bankruptcy trustee's request.

What's more, Olson denied a motion from Tangshan Ganglu Iron & Steel's, the mall's majority owner, to covert the Chapter 7 case to a Chapter 11 reorganization. Kenneth A. Welt, the trustee overseeing the shuttered mall, has obtained a “stalking horse” buyer, Ram Realty, for the property for $24 million, which will be subject to higher and better offers at auction. Essentially, the judge also approved the trustee's auction procedures and the sale to Ram Realty or to the highest and best bidder after an auction.

Attorney Glenn Moses, counsel for the trustee and partner at Genovese Joblove & Battista, tells GlobeSt.com he applauds Olson's decision. That, he says, is because the Trustee, as a fiduciary to all of the constituents in the case, believes that the best way to maximize the value of the Fashion Mall property is to sell it through open and competitive market conditions. 

“If the motion to convert to Chapter 11 were granted, this would not be possible and contentious litigation likely would have ensued,” Moses says. “At this point, we currently have a 'stalking horse' buyer at $24 million, and have implemented procedures to allow the market to establish the highest and best price for this project. We have received substantial interest on the property and look forward to a robust auction process over the next several weeks.”

Fashion Mall was a three-story shopping mall in Plantation, FL that opened in 1988 with Lord and Taylor as its anchor tenant. The mall shut down in Dec. 2006 after severe hurricane damage from Wilma.  

Tangshan Ganglu was not immediately available for comment. Ganglu was planning a mixed-use development called 321 North.