[Source: Andrew Johnson, Arizona Republic] — Attorneys for investors in construction lender Mortgages Ltd. expressed skepticism during a bankruptcy hearing Tuesday about a settlement the company wants to enter with a development firm that borrowed money for condominium projects. Mortgages Ltd. attorneys say settling with KML Development is in the best interest of the nearly 500 investors who put up about $43 million for numerous loans to the borrower.
KML planned to build mixed-use condo towers in downtown Phoenix and Tempe. The company borrowed loans from Phoenix-based Mortgages Ltd. under the names University and Ash LLC, Roosevelt Gateway LLC, and Roosevelt Gateway II LLC for development costs. [Note: To read the full article, click here.]
[Source: Arizona Republic from U.S. Bankruptcy Court records] — Bankrupt construction lender Mortgages Ltd. has reached settlements with seven developers that account for more than one-half the company’s $925 million loan portfolio. Under the agreements, Mortgages Ltd. will subordinate investor interest, find additional capital for certain borrowers, and reduce interest rates for others. The borrowers agree to drop pending lawsuits against the company.
- SOJAC I LLC — Proposed Jackson Street Entertainment District in downtown Phoenix.
- MK Custom Residential Construction LLC — Various condo projects in central Phoenix.
- Grace Communities — Hotel Monroe in downtown Phoenix, X Wine Lofts in Scottsdale, and others.
- University & Ash LLC, Roosevelt Gateway LLC, Roosevelt Gateway II LLC — Various proposed condo developments in Phoenix and Tempe.
- Rightpath Ltd. Development Group LLC — Main Street Glendale near University of Phoenix Stadium.
- Avenue Communities LLC — Centerpoint Condominiums in Tempe
- Bisontown LLC — Residential communities.
[Source: Andrew Johnson, Arizona Republic] — A group of about 50 investors who pumped nearly $8 million into a fund that bankrupt construction lender Mortgages Ltd. managed could have a new committee representing it in court. Judge Randolph Haines granted a motion at a hearing Wednesday at the U.S. Bankruptcy Court in Phoenix clarifying that an existing investor committee does not represent Mortgages Ltd.’s Value-to-Loan fund investors.
That leaves the door open for the U.S. Trustee’s Office to appoint a separate committee to represent those investors. Jonathan Hess, an attorney for the U.S. Trustee in Phoenix, said the office plans to decide on such a request shortly. Valley bankruptcy attorney Dale Schian said he has been asked by a handful of investors in the Value-to-Loan fund to get a committee formed to represent those investors. [Note: To read the full article, click here.]
Known Downtown/Midtown Phoenix Projects associated with Mortgages Ltd.