GARDEN GROVE - The Crystal Cathedral, Orange County's landmark megachurch in Garden Grove, will be sold to escape Chapter 11 bankruptcy and rectify millions in debt woes, according to church officials.
The church plans to sell the 40-acre campus to a real estate group with the guaranteed option of leasing it back for 15 years, spokesman John Charles of Crystal Cathedral said in a released statement.
The plan could be filed in a Santa Ana Court as early as Friday, the Los Angeles Times reported.
The church is $36 million in debt and if a bankruptcy court approves the sale, vendors who are owed $7.5 million could be repaid, ABC7 reported.
Founded by Robert H. Schuller and known for its popular weekly televangelist series "Hour of Power," the sanctuary had decreased revenue in the past few years, according to the Times.
The church filed for bankruptcy protection in October 2010, stating it owed more than $50 million to creditors, such as vendors who helped with the church's well-known Christmas and Easter services, The Times reported.
After four years, the church hopes to buy back the main portions at a fixed price from the investor, including the 13-story Tower of Hope, 10,000-pane cathedral, welcome center and cemetery, Charles said.
Community ministry programs, including services and the weekly "Hour of Power" broadcast will continue, Charles said.
"The purpose of this plan is to generate funds to repay creditors without
affecting the ability of the ministry to operate," Marc Winthrop, attorney representing the cathedral in bankruptcy court, told The Orange County Register."We are pleased that we are able to honor the debt that we have incurred and to honor the creditors who are due their payment," Pastor Sheila Schuller Coleman said. "We are thankful to the vendors for their patience and we are so sorry for any pain that they have incurred. To pay them back 100 percent has always been a top priority and we are grateful to God for providing the resources to be able to do just that."
The investor's name or purchase price has not been released.
Source: http://www.dailynews.com/news/ci_18150694?source=rss
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