DBSI Inc., the national real estate investment and management firm based in Meridian, announced this morning that it filed for Chapter 11 bankruptcy.
The company, which includes subsidiaries such as Kastera Development, said its businesses have been significantly impacted by the recent turmoil in the real estate financial and credit markets, the general deterioration of the economy and the historic declines in the stock market, according to a statement on the company’s blog.
The statement also said those problems “were exacerbated recently by the actions of the various parties and, in the last week, the commencement of legal actions that DBSI submits are without merit and only serve to impede DBSI’s efforts to effectively address its financial difficulties.”
“We are hopeful that we will receive the cooperation of our critical creditor constituencies to permit DBSI the opportunity to complete an orderly restructuring that we believe will provide maximum value for all,” said Doug Swenson, president and chief executive officer, in the statement.
Reuters is reporting that DBSI and its 140 affiliates have between $100 million and $500 million of both assets and liabilities, and between 1,000 and 5,000 creditors. The company manages more than 18.6 million square feet of space, encompassing 280 properties with a total value of more than $2.65 billion, according to the report.
The company filed in the U.S. Bankruptcy Court for the District of Delaware today.
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