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American Spectrum Realty Chapter 11 Petition Filed

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According to the U.S. Bankruptcy Court docket, American Spectrum Realty filed for Chapter 11 protection in the Southern District of Texas, case number 15-31514. The real estate investment company, which owns interests in office, industrial, self-storage, RV parks, retail multi-family properties and undeveloped land, is represented by Richard Lee Fuqua II of Fuqua & Associates.

In January 2014, three of the Company’s wholly-owned subsidiaries – ASR-8 Centre, ASR-Parkway One & Two and ASR-Fountainview Place – filed bankruptcy petitions; and subsidiary Vertugo, LLC filed for Chapter 11 protection on February 12, 2015.

According to American Spectrum Realty, the Verdugo petition was filed in response to foreclosure proceedings being instituted by D&A Semi-Annual Mortgage Fund III. The Company explains, “Verdugo filed the Voluntary Petition in order to preserve the value of its multi-use retail and medical office building located in Glendale, California which the Company believes has a value in excess of the outstanding secured debt….The Lender’s purported rights of enforcement are subject to the applicable provisions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure.” The U.S. Trustee assigned to the parent case scheduled an April 28, 2015 341-Meeting of Creditors.

According to documents filed with the Court, American Spectrum Realty’s largest unsecured creditor is D&A Daily Mortgage Fund III, which holds a $20 million disputed claim. Read more bankrupt company news.