Empire Tower Files For Bankruptcy, Faces Foreclosure Risk

The iconic Empire Holdings Tower in Glen Burnie, Maryland is facing foreclosure after defaulting on loans totaling some $14.5 million. Empire Holdings Corp., the building’s owner, filed for Chapter 11 bankruptcy protection in late October.

The company cited over $14.8 million in debt, most of it owed to Bank of America. Under the bankruptcy terms, a receiver will take charge of the office building while the company works on reorganizing its finances.

Located on Ritchie Highway, the 12-story building was the tallest in Anne Arundel County in Maryland until the construction of the Annapolis Town Center in 2009. Since it opened in 1974, it has been one of the town’s most visible landmarks.

Foreclosure proceedings have not yet started, but Bank of America lawyer Byron L. Huffman said the servicer will request permission from the federal court to initiate the process shortly.

Empire Holdings' failure is most likely a result falling commercial real estate sales, which in turn could be blamed on the current economic recession, according to Atty. Aryeh E. Stein, who is representing the company.

However, the company intends to continue with its plan to draw in new investors and gather capital funds for its reogranization, Stein added.

Records show that Empire CEO Wilfred T. Azar III is currently facing breach of contract lawsuits in Circuit Court. Previous judgments have cost the company millions of dollars, aggravating the situation that led to the bankruptcy.

Besides Empire Towers, which was built by Azar's father, the family also owns the Empire Medical Building and another medical block worth about $5 million.

 

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