Shares of five area shopping centers and a vacant tract of land, which were engulfed in an alleged Ponzi scheme by former Chattanooga Lookouts co-owner John J. Woods, may be sold for $2.7 million.
Chattanooga developer Clint Wolford holds 50% interest in the centers and has offered to pay the sum for Woods’ 50% share in a proposed deal with the federal court-appointed receiver in the case, according to a filing.
The centers are located on Highway 153, Hixson Pike, East Brainerd Road and Battlefield Parkway in Georgia. The vacant tract is on East Brainerd Road and was formerly an elementary school until it was torn down.
A. Cotten Wright, the receiver, is selling off investments that were part of a fund set up by Woods in the alleged Ponzi scheme. She has unveiled plans to return proceeds of sales to investors.
Wright said in court papers that while there are no liens encumbering the companies that hold the shopping centers, there are liens against the underlying real property assets. She said the lien balances were taken into account in valuing the interests.
Approval of the shopping center deal is needed from U.S. District Court Judge Steven D. Grimberg of the Northern District of Georgia.
Wolford didn’t return a phone call seeking comment on the proposed transaction. But he said earlier that he had “no earthly idea” of what the Woods fund did.
“To my knowledge, it’s just John,” he said about investments that Woods, a Georgia resident, had made in the projects.
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