Bankruptcy Lawyer In Dallas Texas

Filed: Lafayette Louisiana Lawyers @ Thu, 11 Feb 2010 21:39:49 +0000





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The developers of the 6,000-acre Dallas Logistics Hub have filed for Chapter 11 bankruptcy protection to reorganize their debts and improve their dismal balance sheet.  Master Land Holding LLC and its parent company Allen Capital Partners LLC said the bankruptcy filing would allow them to “extend debt maturities, improve their capital structure and further strengthen the Dallas Logistics Hub’s competitive position.”

“We have a balance sheet problem, not an operational one,” said Richard Allen, chief executive of DLH and ACP. “The unprecedented collapse of the U.S. real estate and capital markets has made it impossible to continue without restructuring our financial obligations.”

DLH and ACP have received a debtor –in-possession loan which should help them meet their financial obligations to employees, customers and suppliers while in Chapter 11 bankruptcy.  The Chapter 11 bankruptcy fling is not expected to impact the logistics park’s daily operations.  The developers said that both creditors and investors have been supportive; but it is not yet clear if the company will or can arrange a prepackaged bankruptcy plan.  A prepackaged Chapter 11 bankruptcy could guarantee a significant reduction in their debt load and speed their process through bankruptcy.  However, even without a prepackaged bankruptcy, the company can still emerge more viable after the bankruptcy.

The developers of the Dallas Logistics Hub aren’t the only commercial real estate developers to be hit by this recession.  The number of foreclosures and bankruptcy filings in the commercial real estate industry has been steadily rising since the recession began.  There is currently no positive outlook in the near future for commercial real estate; however many developers are using Chapter 11 bankruptcy to create their own mechanisms for recovery.

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