The Baltimore Sun reports that Inner Harbor West LLC, a company affiliated with developer Patrick Turner, has been forced into Chapter 11 bankruptcy.
Inner Harbor West was planning to redevelop the waterfront of the Westport neighborhood of southwest Baltimore before the bankruptcy announcement.
The company was forced into an involuntary Chapter 7 bankruptcy case that was filed by creditors, which was eventually converted into a Chapter 11 bankruptcy by a federal judge.
According to the Sun, Citigroup Global Markets Realty Corp. filed a foreclosure notice against Inner Harbor West and another Turner company, alleging they owed nearly $32 million on a 2007 loan.
Had the judge not converted Inner Harbor West’s filing to a Chapter 11 bankruptcy, the company would have been forced into liquidation to pay off debts.
The Chapter 11 bankruptcy will allow the company to restructure with oversight from the court. “The intention is to keep this going as a viable entity,” said Jeffrey M. Sirody, the attorney representing Inner Harbor West to the Sun.
Inner Harbor West said the filing will allow it to continue to redevelop the Westport neighborhood.
While Chapter 11 bankruptcy is used mostly for business restructuring, Chapter 13 and Chapter 7 bankruptcy can help people stop collections and foreclosures, and restructure debt.
For most debtors, bankruptcy is the best way to dig out of a financial hole. Contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
