Meruelo Maddux files for Chapter 11

New York, March 26 - Meruelo Maddux Properties filed for Chapter 11.

The Los Angeles-based real estate company said it intends to reorganize and continue to seek outside financing while in bankruptcy.

It noted that earlier in the month on its earnings call it had warned that it was "experiencing significant, recurring cash shortfalls because of a challenging credit climate and real estate market and, as a result, was considering its strategic options, including seeking Chapter 11 protection."

"The company worked with diligence to avoid a reorganization filing," said Richard Meruelo, chairman and chief executive officer of Meruelo Maddux, in a new release.

"Despite our best efforts and careful consideration of all other alternatives, the filing became necessary given the challenging economic climate. Now, our goal is to implement a comprehensive reorganization and continue to seek additional outside financing which we believe will allow us to move forward."

Included in the filing are numerous subsidiaries, but not the company's 35-story 717 W. Ninth Street residential tower project currently under construction.

Meruelo Maddux is a self-managed, full-service real estate company that develops, redevelops and owns commercial and multi-family residential properties.

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