For the second time in as many weeks, the public auction of the historic Fox Theatre in downtown Redwood City is on hold because of “mutual agreement.”

The rescheduled foreclosure sale was set for 1 p.m. Friday and was a go up until shortly before the scheduled time. The automated update line only listed the reason for a postponement until Nov. 12 as “mutual agreement,” the same as the first time the theater’s sale went on hold. PLM Lender Services, the creditors handling the foreclosure sale, had no further information but foreclosure representatives previously said the phrase can refer to a number of possibilities.

Most likely, financially struggling owners John Anagnostou and Michael Monte reached some sort of settlement with their creditors over the theater at 2215 Broadway to give them more time. The pair have indicated a desire to hold onto the property and an adjacent parking lot whose Monday auction is now moved to Friday, Nov. 13.

Neither man could be reached for comment.

Speculation about the fate of the Fox has swirled since the theater’s financial problems first came to light in September. Redwood City officials fueled the fire by holding a closed session meeting on the property but no plans to make an offer on what was heralded as a key piece of the downtown’s revitalization.

The theater’s net value is $2.39 million, according to the San Mateo County Assessor’s Office.

According to the notices of default filed four months ago, Anagnostou and Monte owe $62,795.72 on a $1.175 million note to Coast Capital Income Fund as of June 25. Monte and Anagnostou’s father, George, also owed $110,712.46 in past due payments, interest and fees as of July 24 to Palo Alto Players-Peninsula Center Stage.

After the 90-day deadline for default came in late September, a public auction was scheduled for Oct. 22. The day before, that sale was postponed until Friday, citing “mutual agreement.”

PAP filed a notice of rescission just before the last scrapped public auction, after it was paid the past due installments, default interest, penalties and other costs to make the note current, according to Executive Director Peter Bliznick.

PAP is the senior lien holder but filed its default notice second.

Alongside the mortgage payments, the Fox Theatre was also nearly $30,000 behind in property taxes until recently.

PLM has received calls from many interested parties but it is impossible to know how many are serious bidders.

The art deco theater seats 1,400 and includes a bar and concession area. The property also includes the Little Fox nightclub next door. When the theater reopened, the city expected it to draw crowds downtown and the newly spruced up Courthouse Square across the street.

The theater auction is scheduled for 1 p.m. Thursday, Nov. 12 on the Marshall Street side of the County Government Center, 400 County Government Center, Redwood City.

Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.