PROVIDENCE, R.I. (WPRI) -- Two attorneys who helped turn around Westerly Hospital when it was financially distressed a decade ago have been tapped to usher the Providence Place mall through receivership, a state-level version of bankruptcy. R.I. Superior Court Judge Brian Stern on Friday named W. Mark Russo and John Dorsey as temporary receivers for Providence Place. The state's largest shopping complex was placed into receivership last week after its largest private lenders said the mall's management company -- Brookfield Properties -- defaulted on a $259 million debt. "Providence Place mall is an extremely important asset for both the city and state," Russo told Target 12 on Monday, adding that he and Dorsey would be working with everyone involved, "to protect that asset." He said receivership largely happens behind the scenes and shoppers shouldn't notice any changes to the mall itself. He encouraged people to visit and shop at the mall as usual. TARGET 12: Judge puts Providence Place mall into receivership "Shoppers won't discern any difference," Russo said. "The mall is going to be there and they can do their holiday shopping. They don't have to change their plans." For the mall's more than 100 listed tenants, Russo said he and Dorsey would be available to answer their questions and that the state's receivership law is well-designed to protect tenants. "They don't have to worry either," he said. Russo and Dorsey, who are partners at Ferrucci Russo Dorsey in Providence, worked on a team that took over Westerly Hospital after it filed for receivership in 2011. The attorneys oversaw the hospital's eventual sale to Lawrence + Memorial Hospital in New London, Conn., which agreed to take on about $16 million in debt. The receivers paid out about $40 million in claims, according to terms of the deal. In the Providence Place case, the attorneys have been authorized to create a transition plan that involves pushing out Brookfield Properties' local corporate entity -- GGG-Providence Place LLC -- and hiring Centennial Real Estate Management LLC, a Texas-based company. The mall was previously owned by GGP Inc., formerly known as General Growth Properties, and a $305 million loan was taken out for the mall in 2011. Brookfield acquired GGP in 2018. A loan extension was agreed to in 2021, but lending documents submitted in court show the management company fell into default when the loan matured in May. Russo and Dorsey are now authorized to issue a bond worth $500,000 to keep the mall operating while they work toward shoring up its finances and figuring out what to do next. Receivership typically ends in a sale, but it can also conclude with the liquidation of assets. The lenders -- represented by U.S. Bank National Association -- will be financially responsible for the bond, which could be repaid with proceeds of an eventual sale of the mall. In the meanwhile, Russo and Dorsey will take over all tenant and lease agreements. And the mall's current leaseholders will pay into a so-called "lockbox," which serves as an account set aside to pay back expenses and debts, similar to an escrow account. The $500,000 bond is designed to help solve the mall's short-term financial problems. But the 1.4 million-square-foot mall, hailed as a crown jewel of Providence when it opened in 1999, has long-term financial issues driven in part by the fact that shoppers have increasingly moved away from brick-and-mortar retailers toward online shopping. The mall is also in jeopardy of losing its anchor tenant, Macy's, along with a decades-old tax treaty with Providence, which gives the mall a massive tax break that is slated to end in 2028. In 2022, mall executives pitched the idea of extending the existing 30-year tax deal that started in 1998 for another 20 years. But the proposal was met with a cool response from city leaders, and never moved forward. Providence Mayor Brett Smiley spokesperson Josh Estrella last week said the mall "needs to adapt to changing market conditions," adding that successful malls have evolved into "mixed-use development and new commercial space. Gov. Dan McKee spokesperson Laura Hart said Monday that "malls across the country are facing some of the same shifts in the retail market." "This issue is not unique to Rhode Island," she said. "The receivership is an opportunity to review all aspects of the mall’s operations and determine the best path forward to adapt to a changing marketplace." The next court hearing on the receivership case is schedule for December. Eli Sherman ([email protected]) is a Target 12 investigative reporter for 12 News. Connect with him on Twitter and on Facebook. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Daily Roundup SIGN UP NOW