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Saturday, Apr 20, 2024

Projects in Chapter 7

Two multi-family developments in the Valley are in Chapter 7 bankruptcy. They are linked to a chapter 11 bankruptcy filed by Dilip K. Ram, and Hazel S. Ram. Valleyheart LP filed for Chapter 7 in January in United States Bankruptcy Court, Central District of California, San Fernando Division. The development is located at 13004 Valleyheart Drive in Studio City. West Hills Townhouse Partners filed for Chapter 7 in February in the same court. The property is located at 23130 W. Sherman Place in West Hills. These are two of multiple Chapter 7 filings, related to the chapter 11, for real estate projects throughout Southern California. One of the most high-profile of the bankrupt developments is downtown L.A.? Brockman Building, according to the Los Angeles Business Journal. The property at Grand Avenue and Seventh Street was constructed in 1921 and converted into residences. Developers spent $35 million on the project. The bankruptcies are tied to the real estate dealings of Dilip Ram and Norman Salter, principals of West Millennium Group. The two met in the 1990s and purchased and worked on a number of distressed properties in Southern California, according to a case status conference report for the Ram case. They would buy and complete properties or a bank or bonding company would employ them to complete projects. Dilip and Salter formed a number of ?pecial purpose entities?(SPE) to develop condominiums, apartment complexes, large homes and some commercial projects. The two provided unsecured personal guarantees for virtually all of their SPEs, says the court filing. As a result of the economic downturn and tightening capital markets, the SPEs were unable to meet their financial obligations. Most, if not all, of the duo? SPEs will file for bankruptcy protection. An estimated 100-199 creditors are involved in the chapter 11 case and estimated debts are between $100 million to $500 million, according to court documents. Salter filed a separate Chapter 11 bankruptcy case in February in United States Bankruptcy Court, Central District of California, San Fernando Division.

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