Chapter 11 Bankruptcy by Developer of CDC Property in Doral

Owners of 120 acres of undeveloped land in Doral, Florida, obtained development financing through the use of community development district bonds. Due to the 2008-2010 real estate recession, the anticipated value of the property was vastly undermined. As a result, the owners filed for chapter 11 bankruptcy protection to avoid a foreclosure judgment, resurrect their mixed-use development, and provide a recovery for unsecured creditors. The debtors were burdened with almost $200 million in secured obligations, approximately half of which stemmed from community development district obligations. After extensive litigation, the debtors agreed to a sale of the property as part of a chapter 11 plan of liquidation. The sale closed successfully, unsecured creditors received a distribution toward their claims, and the new owner contemplates development of the property in the near future.