News updates are sent daily. You can unsubscribe at any time.
Valley developer Opus West filing bankruptcy
Digg|
Save|
License|
Print|
E-mail|
Phoenix-based Opus West Corp., which owns numerous high-profile office, residential and retail developments in the East Valley, will file for Chapter 11 bankruptcy reorganization in early July, the company said Wednesday.
In a related action, Opus East LLC, another Washington, D.C.-based affiliate of the Opus Group, filed Wednesday for Chapter 7 liquidation under the U.S. Bankruptcy Code.
The bankruptcy filings are the result of steep declines in commercial real estate values and difficult credit-market conditions, said Mark Rauenhorst, chairman and chief executive of Opus Corp.
"We are taking the actions announced today to liquidate Opus East's portfolio and allow for the restructuring of Opus West's operations," he said in a written statement. "We regret that this action has proven to be necessary despite the efforts of so many. A court-supervised process and transfer of distressed assets will assist Opus in reorganizing and focus on the future."
Two other units of Opus Group - Opus North Corp. and Opus Northwest LLC - are not included because they have been less affected by economic and capital-market conditions, he said.
Opus South Corp., based in Atlanta, filed for Chapter 11 reorganization in April.
Opus West has retained legal counsel to explore restructuring options, the company said. John Greer, chief restructuring officer for Opus West, said the company will maintain its headquarters in Phoenix and a "modest" presence in California and Texas to focus primarily on selling properties.
"We continue to take steps to resize the business, reduce expenses and cash consumption and deleverage our portfolio (reduce debt)," he said in a statement.
Opus West has developed more than 52.7 million square feet of space since starting operations in 1979.
Among its major East Valley projects are Chandler Airport Center, a two-building office complex in a 14-acre office park; Chandler Pavilions, a 243,833-square-foot retail center at Interstate 10 and Ray Road; Tempe Gateway, a 264,000-square-foot office/retail project near a light-rail stop in downtown Tempe; and Scottsdale Waterfront Residences, two 13-story residential towers at Scottsdale and Camelback roads.
Please add your comments, but follow these guidelines to keep this a safe, credible place for discussing the news: