Fashion Square Mall owners filed a Chapter 11 bankruptcy on Friday, while accusing its lender — The Bancorp — of cutting off promised funding for planned renovations, the Orlando Sentinel reported. The bankruptcy filing on Friday automatically halts a foreclosure lawsuit filed on Tuesday by The Bancorp against Orlando’s Fashion Square, which alleged that the mall owner had fallen behind on payments for its $42.2 million loan. Bankruptcy documents state that the mall owner, an affiliate of Tennessee-based UP Development, withheld payments on the loan because it learned that Bancorp was "misrepresenting" details of the renovation plans. But the bank has alleged that UP has "grossly mismanaged" the mall and failed to pay taxes.
