The company affiliated with developer Patrick Turner that was planning to redevelop the waterfront of the Westport neighborhood in southwest Baltimore has filed for bankruptcy.
Inner Harbor West LLC, the subject of a Chapter 7 involuntary bankruptcy petition filed by two creditors earlier this month, has asked a federal judge to convert the case to a Chapter 11 bankruptcy, according to documents filed Tuesday in Maryland's bankruptcy court.
If the change is allowed, Inner Harbor West LLC could reorganize with trustee oversight and develop a plan to repay creditors. A Chapter 7 bankruptcy, if it were to go forward, would likely mean the liquidation of the company's assets.
Late last year, Citigroup Global Markets Realty Corp. filed a foreclosure action against Inner Harbor West and another Turner-affiliated company, alleging they owed nearly $32 million on a 2007 loan.
A 43-acre waterfront parcel, where Turner planned to build a mixed use development, served as collateral for the loan and was scheduled for auction on Valentine's Day.
The auction was canceled when the involuntary bankruptcy petition was filed by a construction firm and a land consulting company that allege Inner Harbor West owes them more than $200,000.
"The intention is to keep this going as a viable entity," said Jeffrey M. Sirody, the attorney representing Inner Harbor West in the bankruptcy case. A Chapter 11 conversion could allow the Westport re-development to go forward, he said.
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