Real Estate Loans Send AmTrust Financial Into Ch. 11

Law360, New York (December 2, 2009, 4:26 PM EST) -- The Cleveland-based parent of AmTrust Bank has filed for bankruptcy protection, saying it needs to reorganize because of loans issued in connection to the floundering real estate market.

In an affidavit filed Monday in the U.S. Bankruptcy Court for the Northern District of Ohio, AmTrust Financial Corp. CEO Peter Goldberg said the company needs to reorganize because it has been “severely impacted” by its investments in single-family home, land acquisition, development and construction loans.

“In the past two years, the debtors have diligently attempted to survive...
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