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Wade Park Land files bankruptcy to stave off development foreclosure
By Caroline Salls
Pittsburgh, Aug. 27 – Wade Park Land Holdings, LLC filed Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the Northern District of Georgia.
The company said in the bankruptcy petition that it received an $82.75 million construction loan from Gamma Real Estate Capital, LLC to fund phase one of the development of its Frisco, Tex., development project.
Wade Park said the lender delivered a notice of maturity default in March 2018.
The company said it also owes contractors and other project parties at least $20 million.
According to the petition, the completed value of the development project is projected to be $1.257 billion, and the existing value is “substantially in excess” of the amount owed to the lender.
“Unless the threatened foreclosure of the development phase one is enjoined or stayed pending a refinance, the company’s equity in the development phase one will be lost, and the company will be unable to meet its obligations to contractors and other creditors with respect to the project,” the petition said.
According to court documents, Wade Park has $100 million to $500 million in both assets and debt.
The company’s largest unsecured creditors are John D. Phillips of Atlanta, with a $4.83 million trade claim; Wade Park Finance Co. A1 of Atlanta, with a $4.75 million financing claim; City of Frisco, Tex., with a $3.53 million trade claim; Wakefield Beasley & Associates of Alpharetta, Ga., with a $2.93 million trade claim; and Alliant Insurance Services, Inc. of San Diego, with a $2.15 million trade claim.
Stone & Baxter, LLP is representing Wade Park in its Chapter 11 proceedings.
Newnan, Ga.-based Wade Park develops and operates property sites. The Chapter 11 case number is 20-11192.
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