LOS ANGELES — The U.S. Bankruptcy Court for the Central District of California confirmed Oceanwide Plaza’s revised liquidation plan. The court approval clears the way for the sale of Oceanwide Plaza to KPC Square for $470 million.

KPC Square is a joint venture between KPC Group and Lendlease. The acquisition structure includes $70 million in cash and a $400 million credit bid based on rights to unpaid construction bills and senior debt from Chinese EB-5 investors. A back-up buyer has been secured for the property, allowing the debtor to engage an alternative purchaser if KPC Square fails to close the transaction. This contingency involves an investor group affiliated with Sean Burton’s Cityview.

Oceanwide Plaza began construction in 2015 as a $1.2 billion luxury development. The project was designed to feature a Park Hyatt hotel, condominiums, and retail space within a 52-story tower structure. The site sits across from Crypto.com Arena, LA Live, and the Los Angeles Convention Center.

Construction halted in 2019 after parent company Oceanwide Holdings ran out of money. The work stoppage left contractor Lendlease with more than $150 million in unpaid bills.

The City of Los Angeles initially objected to the sale in May, arguing the proposal lacked a realistic path forward. The city withdrew its objection to the modified bankruptcy plan after receiving commitments from the proposed buyer. Officials stated the revised plan included meaningful improvements that serve the interest of the downtown Los Angeles community. A release regarding the decision noted that the rulings reflect months of coordinated work across every stakeholder in this case.

Workers must begin removing graffiti from the three unfinished towers within 30 days of the court order. The proposed buyer has committed to removing graffiti from the buildings' exteriors within the next 90 days. The proposed buyer will fund the graffiti cleanup.

Oceanwide Chief Restructuring Officer Bradley Sharp addressed the court's decision. "This confirmation is the culmination of a long and complex process, and it delivers exactly what we set out to achieve: a credible path to finally bring this project back to life," Sharp said. KPC Development Co. stated in a previous statement that it is "eager to work in partnership with the city of Los Angeles and the downtown community to move quickly on what is truly a keystone project for downtown revitalization."

Debra Shrout from the South Park Neighborhood Association expressed concern regarding the timeline for renovations relative to upcoming international events. Los Angeles is preparing to host the 2028 Summer Olympics. "We're very concerned about the Olympics. What is the view that the world's going to see in a couple of years? We would prefer it not be the graffiti," Shrout said.

The confirmation of the liquidation plan resolves years of uncertainty surrounding one of downtown Los Angeles's most prominent unfinished projects. The $470 million sale provides a mechanism to satisfy outstanding debts, including the more than $150 million owed to Lendlease. The requirement for graffiti removal within 30 days and full exterior cleanup within 90 days addresses immediate aesthetic concerns raised by local residents and city officials.

The project's location across from major venues like Crypto.com Arena and the Los Angeles Convention Center makes its appearance a focus as the city prepares for the 2028 Summer Olympics. The involvement of a back-up buyer ensures continuity if the primary joint venture between KPC Group and Lendlease does not complete the purchase. This structure aims to prevent further delays in revitalizing the site, which has remained incomplete since 2019.