Since the recession and housing collapse in 2007, many individuals and businesses in Florida have continued to struggle. Not only have many lost their homes to foreclosure, but many with ties to real estate have ended up filing for bankruptcy.
Recently, two companies that have ties to a Bal Harbour condo hotel filed a motion in bankruptcy court. This filing by the owners of the common areas and units within the One Bal Harbour Resort & Spa is the first step toward selling the condo hotel.
If a sale goes through, which is what the filing seeks, this would not be the first time the condo hotel was sold through bankruptcy. In fact, the condo hotel was sold in a 2009 bankruptcy.
At this point little is known about the bankruptcy. However, speaking in generalities, there are many companies in Florida that have fallen into serious debt and filed for bankruptcy. These companies related to Elevation Communities LLC are certainly not the only ones.
A business bankruptcy is often used as a way to remain economically sound. Whether it is a Chapter 7 liquidation bankruptcy, or a Chapter 11 reorganizational bankruptcy, either has the same purpose of helping those companies struggling with debts and creditors.
However, filing for a business bankruptcy, while beneficial, can still be quite a confusing process. With so much on the line, it often makes the most sense to talk with an experienced business bankruptcy attorney in order to make sure everything is done in a way that keeps the best interests of the company and owners in mind.
Source: South Florida Business Journal, “Bal Harbour condo hotel seeks bankruptcy sale,” Paul Brinkmann, Jan. 4, 2013