February 1, 2007

Settlement for L.B., QSDI OK'd: Holder of QM lease to pay $4.9M in rent dispute deal.

LOS ANGELES - A bankruptcy judge on Tuesday approved a $4.9-million settlement between the city of Long Beach and the company that operates the Queen Mary.

The settlement, tentatively reached in November, put an end to a long-running rent dispute between the city and Queen's Seaport Development Inc.
The city owns the historic ship, while QSDI - which declared Chapter 11 bankruptcy last year - leases it.

QSDI agreed to pay the city $4.9 million in an effort to resolve its legal disputes before the lease is sold. Under the terms of the settlement, the city could also receive proceeds from the sale, as long as QSDI's other creditors are paid off first.

U.S. Bankruptcy Court Judge Vincent Zurzolo gave final approval to the settlement Tuesday, saying it met all the legal requirements and was in the best interest of the estate.
"It's a very good day," said Howard Ehrenberg, QSDI's bankruptcy trustee and the lead negotiator of the settlement.
- Wendy Thomas Russell


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