Hallelujah: Tampa Channelside condos emerge from bankruptcy

At least one of those financially distressed Tampa condo project has cleared bankruptcy court with a new lease on life.

The Towers of Channelside, a pair of 29-story towers near the Port of Tampa, got the blessing of bankruptcy court Wednesday to string out its repayments to creditors over 5 years.

The Towers filed for Chapter 11 last winter after potential buyers failed to close on units, leaving developers without means to satisfy debts to financier Wachovia Bank.

Other projects in and around downtown Tampa, including The Place at Channelside, haven't been so lucky. The Place is up for auction this month after a judge ordered a sale of assets.

The Towers, however, still faces challenging odds. Crushed by foreclosures, banks have slashed residential lending, no more so than with condo loans.

A glut of vacant condos, combined with plunging prices, has made condo lending high risk for many banks.