Philadelphia Trump Tower Affiliate files Chapter 11 Bankruptcy on January 7, 2013
VTE Philadelphia LP , a company affiliated with Donald Trump constructing a 45-store luxury hotel and condominium complex in Philadelphia filed for Chapter 11 bankruptcy January 7, 2013 in New York to prevent foreclosure.
It has a sole secured creditor, US Bank, which is owed approximately $17M. The debtor estimates that its assets are valued at $10M-$50M and it has total debt in approximately the same range.
The project’s website indicates that it was initially slated to be completed in 2009. VTE said it filed for bankruptcy to avert the foreclosure and to find investors to salvage the project. “The debtor believes that under the aegis of the bankruptcy court, it will be able to restructure its business and prepare a plan of reorganization,” it said.
In re VTE Philadelphia LP, U.S. Bankruptcy Court, Southern District of New York, Case No. 1:13-10058. The debtor is represented by Alex Spizz of Todtman, Nachamie, Spizz & Johns, P.C.
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