Tag Archives: Bankruptcy

First community Village goes in for Chapter 11 bankruptcy filing

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The real estate industry has never had to so bad. After all, the sub-prime crisis is what it all started with and that is why people are scared of anything to do with realty. No wonder you see so many companies in the real estate space just about falling apart and filing for bankruptcy, all so often. The latest victim in this jamboree happens to be First community Village which is a not for profit housing complex for senior citizens. This is a community that fell into problems due to an expansion plan and it wants to go in for Chapter 11 in order to circumvent the effects of the financial troubles that it currently finds itself in.

First community Village wants to get into a kind of re-structuring plan whereby it can make good its debts and also restructure and reorganize the business so that it can become a unit of the National Church Residences which is based out of Upper Arlington. This is an organization that is committed to furthering the cause of senior housing as well as health care. The entity has assets close to between $50 million to $100 million and around $90 million in debt. There are a few creditors who want their dues to be settled at the earliest leading to the chapter 11 filing.

Biovest Recovers from Bankruptcy

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The tamap florida based company Biovest International Inc. has declared that it would be filing its proposed plan of reorganization and is on the path of ensued emergence from bankruptcy. It expects to be back on its feet by this summer and restart as a fully restructured company. It was filed with the U.S. Bankruptcy Court for the Middle District of Florida in Tampa.

A deal was made last month between Biovest and its largest creditor Laurus Master Fund Ltd to restructure the company’s debt. It has plans on paper for restructuring per-petition debt of about $30.2 million consisting of mostly short term obligations. These payments will be deferred till two years after Biovest emerges from chapter 11.

The president of Biovest foresees both Biovest and its parent company Accentia Biopharmaceuticals Inc to both emerge from Chapter 11 simultaneously. The work is being carried on restructuring Accentia’s reorganizational plans.

Vestavia Hills City Center in bankruptcy

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Vestavia Hills City Center has now been brought to such a pass that its fate is now in the hands of the courts. This is because Vestavia Hills City Center which is owned by the AIG Baker Vestavia LLC has opted for Chapter 11 bankruptcy so that it may not be foreclosed and liquidated. The Vestavia Hills City Center is a 378,000 square foot large shopping center on the U.S. 31 highway. The problem occurred because Vestavia Hills City Center owed around $40 million on the property which was sold to Propst Properties by BBVA Compass earlier in the month. The legal counsel for Vestavia Hills City Center has said that the bankruptcy process has been engaged in after all negotiations with the tenants and all those it owes money to, fell through and did not yield any results at all.

Vestavia Hills City Center is a property that was on the brink of a sale which did get halted just in the nick of time and this happened because AIG Baker defaulted on its loan payments. This was a aloan that had been taken in 2002 by AIG Baker in 2002 from BBVA Compass which was taken to refurbish Vestavia Hills City Center.

Bankruptcy comes calling on Hollander 95

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Hollander 95 is a business park that was being developed on the east side of Baltimore. But now the company that is developing is has to go in for bankruptcy filing as it has missed a payment to the former Provident Bank. This is also being said that M&T Bank refused to give it forbearance agreements that would have allowed the company to get some time to get the required finances and come out of bankruptcy proceedings. This is something that has pushed the company to the jaws of insolvency leading to bankruptcy filing, which is what they all wanted to avoid but could not. It seems that the builder missed out a single $11.8 million payment, which is why it had to go in for the bankruptcy proceedings that are all so demeaning to any company.

The M&T Bank would not allow any time which is why the property was to go in for a foreclosure. To avoid this foreclosure, the property owners had to mandatorily file for bankruptcy even if it meant that their dreams of getting the project off the ground had to gets helved. This was unfortunate but true, because if a bank goes against you, there is very less that you can do.

General Growth Properties to emerge from bankruptcy

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There has been a lot of speculation about General Growth Properties and when this company will be able to emerge out of bankruptcy. The company had filed chapter 11 bankruptcy and has now filed with a court in NYC to get permission so that it may be able to emerge out of the chapter 11. This company owns well known malls like the Streets at Southpoint in Durham, among many others. General Growth Properties has already got around $6.5 billion in funding from Brookfield Asset Management, Fairholme Capital Mgt and Pershing Square Capital Mgt. The funds from these companies have helped General Growth Properties to muster the courage to try and get out of Chapter 11 bankruptcy.

Once General Growth Properties gets out of bankruptcy, the plan is to ensure that the company forms a new company called General Growth Opportunities that will oversee a portfolio of real estate assets. This is how the company plans to out the past behind it and emerge from the shadows of bankruptcy filing much stronger. There have been a lot of other companies that have wanted to take it over and also at a good price. But General Growth Properties has stuck its neck out and wants to hold its own against all odds.