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Creditors threaten to sue Crystal Cathedral

The Crystal Cathedral in Garden Grove, Calif., is seen in this undated photo.

August 10, 2011 12:00:00 AM PDT
Creditors are now threatening to sue the Crystal Cathedral in Garden Grove unless its owners agree to sell the landmark.

A creditors committee filed documents in federal bankruptcy court Tuesday that call for the sale of the 40-acre property.

The financially troubled church recently announced it's not for sale, but there are offers on the table.

The Catholic Diocese of Orange recently upped its bid to buy the property for $53.6 million. The new offer includes a rent reserve that would allow Crystal Cathedral ministries to remain onsite and hold services for several years.

There are also several other bids in the $50 million range.

Creditors say the church board could choose a buyer. But if it won't cooperate, they'll push through a deal and then sue, arguing church leaders improperly received payments that should've gone to the creditors.

The cathedral filed for Chapter 11 bankruptcy last October.

The Associated Press contributed to this report.