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LA Developer Says It Can't Afford Ch. 11 Legal Fees

Law360 (March 4, 2011, 6:03 PM EST) -- The costs of litigation over competing reorganization plans for bankrupt Meruelo Maddux Properties Inc. have left it too cash-strapped to pay its lawyers, the Los Angeles developer told a California bankruptcy judge Tuesday.

The debtor asked Judge Kathleen Thompson of the U.S. Bankruptcy Court for Central District of California to push up a hearing on its inability to pay the “extraordinary professional fees” demanded by its attorneys and creditors' lawyers.

Judge Thompson agreed to set a hearing for March 18.

In the last six months, Meruelo...
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