LA’s $1.2 Billion Graffiti Towers Reach Bankruptcy Exit Deal (1)

The long-stalled Oceanwide Plaza project in downtown Los Angeles has struck a bankruptcy-exit agreement with creditors, clearing the way for a potential sale after its Chinese developers invested about $1.2 billion.

The settlement resolves an inter-creditor dispute over the residential complex — dubbed the Graffiti Towers for its spray-painted exterior — which has been stalled since 2018 after developer China Oceanwide ran out of funding when Beijing curbed overseas investment by Chinese firms.

A potential investor is negotiating to buy the property, a deal that hinges on resolving the bankruptcy, according to people with knowledge of the matter, who asked ...