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Dan Stanbrough LC, owner of downtown’s Keck City Center, can use up to $81,518 from operation of the building to pay bills, pending the outcome of the company’s efforts to reorganize under federal bankruptcy laws.

The company, controlled by developer Daniel Stanbrough, filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code April 23 in U.S. Bankruptcy Court in Des Moines. Under the filing, the company would continue to operate the building, currently home to the Downtown School, retail businesses and a parking garage, while getting its finances in order.

Of immediate concern are a $5.1 million mortgage with Regions Bank, which the lender says is in default because Dan Stanbrough LC failed to meet certain conditions of the loan, and a delinquent property tax bill of $382,738, which includes interest paid to a Red Oak partnership that has purchased delinquent taxes, according to records with the Polk County treasurer.

Attorneys for the company and Regions Bank agreed to terms of an order signed May 3 by Bankruptcy Judge Anita Shodeen.

In addition, Dan Stanbrough LC will continue to operate the building at Fifth and Grand avenues, which it purchased in 2005 from Principal Life Insurance Co. for nearly $6.2 million. According to Polk County property records, it has a current assessed value of $4.69 million.

Regions, which filed to foreclose on the loan in Polk County District Court, initially challenged Dan Stanbrough LC’s efforts to maintain control of receipts from operation of the building. In addition, a Polk County judge had agreed to Region’s request to have a receiver operate the building.

Dan Stanbrough LC argued in a court filing that it would not have sufficient cash to operate the building unless it had access to monthly receipts.

In the bankruptcy filing, the company claimed assets of $6 million and debts of $5.6 million.