The developer behind the Westphalia Town Center is advancing the project on multiple fronts despite the recent receipt of a potential default notice tied to more than $34 million in maturing debt.
Calgary, Alberta-based Walton Westphalia Development Corp. released its first quarter earnings results on Monday for the 310-acre Westphalia property in Prince George’s County.
During the quarter, the developer removed 150,000 cubic yards of material and continued construction of a second stormwater management pond, began scoping meetings and negotiations for the Westphalia Green park, proceeded with the design of the Pennsylvania Avenue interchange with Woodyard Road, and launched negotiations with the county for tax increment financing incentives — proposals and counterproposals were swapped in early April.
All of this comes as the corporation faces the potential of default. On May 10, it received a default notice from the senior lender, with 30 days to cure. As the Washington Business Journal’s Dan Sernovitz previously reported, Walton Westphalia is working with lenders to cure the default by raising additional equity, refinancing, asset sales, taking on additional debt or securing a temporary waiver or forbearance agreement.