Sunnyvale LLC, the holding company for American Mall Properties, the developer that owns most of the Town Center, filed for bankruptcy to prevent the auction of the Town Center on Sept. 24. According to City Attorney Valerie Armento, the filing has delayed the company's involvement in the city's separate foreclosure proceedings to collect close to $700,000 in unpaid taxes.

"We got all the parties served before the company filed for bankruptcy," Armento said. "This will just delay things for a bit."

According to Mary Bradley, director of finance for the city of Sunnyvale, the Chapter 11 protection allows the holding company to "put forth a plan of organization to the courts in order to pay off their debts." After a 30- to 60-day period to present the plan, the holding company must stay current with its creditors by paying off both the bank loans and the city bond payments.

Bradley said if the company fails to make these payments, which is conceivable, the courts would set another sale date for the Town Center.

"The problem is that groups on the fringe of this case, like the city, have no control over what happens at this stage," Armento said.

Bradley said that when the holding company filed for Chapter 11 protection, it stipulated the continuation of the receivership of James Barron. She said that all parties involved are pleased with this decision.

In a study session with the Sunnyvale City Council on Sept. 17, Barron said the date of resolution for both sets of foreclosure proceedings is "both unknown and unknowable."