Downturn Sends 4 CitiApartments Affiliates Into Ch. 11

Law360, New York (February 10, 2010, 7:11 PM EST) -- Gutted by the housing downturn and unable to make payments on $132 million of debt, four affiliates of CitiApartments Inc., San Francisco’s largest apartment owner, have sought shelter in Chapter 11 bankruptcy protection.

The four entities filed petitions Monday in the U.S. Bankruptcy Court for the Northern District of California, seeking to keep noteholders at bay and obtain financing as the strapped real estate companies try to restructure the mountainous debt, the bulk of which is serviced by CW Capital Asset Management LLC.

The four entities...
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