
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 1, 1993                   TAG: 9307010278
SECTION: CURRENT                    PAGE: NRV-1   EDITION: NEW RIVER VALLEY 
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: BLACKSBURG                                LENGTH: Medium

SHOPPING CENTER WILL PAY CREDITORS

The owners of Gables Shopping Center, who filed for protection from creditors under Chapter 11 in January, have agreed to pay their major creditor nearly $2 million or forfeit ownership of the property.

The compromise, to be filed in U.S. Bankruptcy Court in Roanoke, requires Gables Associates to pay CP Partnership, a group of local investors, $1.95 million within 90 days.

Gables Associates is also required to pay CP $14,350 interest each month until the debt is paid.

Copies of the agreement have been sent to Gables tenants - who have been paying rent to CP Partnership for several months - and a hearing will be held July 12 if there are any objections.

James Douthat, a Roanoke lawyer representing Gables Associates, said CP Partnership holds two mortgages on the Gables property.

Gables Associates, headed by Fred Myers, can apply for a 90-day extension on the payment, but must pay an additional $5,000 each month if it does.

According to records filed in the Montgomery County Court House, the CP partners are: the estate of W.F. Pack Jr., Blacksburg; Jack W. Cook, Radford; Devota Pack, Blacksburg; Dick Cook, Roanoke; and Billy Cook, Radford.

Douthat said Myers will spend the next few months negotiating with Harris Teeter to move into the former Leggett store at Gables.

Harris Teeter officials agreed to move into the shopping center two years ago, but the deal was delayed when Wade's Supermarket, also in the shopping center, claimed the landlord violated its lease by recruiting another grocery store.

Wade's sued Gables Associates in 1990 seeking $3.15 million in damages or an injunction to keep Harris Teeter out of the shopping center. The Virginia Supreme Court ruled against Wade's last year.

In a March hearing, Myers blamed the center's financial problems on Wade's efforts to keep Harris Teeter out of the shopping mall.

The shopping center filed for bankruptcy to avoid foreclosure by Integon Insurance in Winston Salem, N.C. Integon sold its note on Gables to CP Partnership in February.

Gables has suffered high vacancy rates since Leggett moved to the New River Valley Mall in 1988.

Earlier this month Wade's moved its Blacksburg store across South Main Street to Blacksburg Square shopping center, leaving Gables without an anchor store.

by CNB