Downtown Phoenix developer petitions court to force lender into bankruptcy

[Source: Andrew Johnson, Arizona Republic, June 20, 2008] — A developer behind several high-profile real estate projects and a construction contractor filed a petition late Friday to force lender Mortgages Ltd. into bankruptcy.  Grace Communities, which is developing the 44 Monroe condominium tower and Hotel Monroe in downtown Phoenix, filed motions in U.S. Bankruptcy Court for the District of Arizona asking a judge to put Mortgages Ltd. into Chapter 7. 

Separately, the firm also filed a lawsuit against Mortgages Ltd. seeking the $48 million in financing it claims it is owed for the Hotel Monroe project and to get a $100,000 bond from the lender’s regulator, the state Department of Financial Institutions.  If a judge accepts the bankruptcy petition, the Phoenix-based financier would be required to sell its assets.  Grace Communities also filed an emergency motion to appoint an independent trustee to take over Mortgages Ltd.’s operations.  [Note: To read the full article, click here.]

Other notable Mortgages Ltd. projects funded in and around downtown Phoenix:

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