Cash-Strapped Builder Warns Of Possible Ch. 11 Filing

Law360, New York (March 12, 2009, 12:00 AM EDT) -- Southern California real estate developer Meruelo Maddux Properties Inc. disclosed Wednesday that it was rapidly running out of cash and might be forced to file for Chapter 11 bankruptcy protection.

In a statement announcing its 2008 fourth-quarter and calendar-year results, Meruelo Maddux said it was experiencing significant cash shortfalls resulting from operating activities, recurring investment activities such as interest payments and real estate taxes, and capital expenditures on existing rental properties.

“One way to generate liquidity in this challenging credit climate and real estate market is...
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