HOUSTON—American Spectrum Realty Inc., a real estate investment, management and leasing company, has revealed a joint plan of reorganization. The plan affects three of its subsidiaries: ASR-8 Centre LP, ASR-Parkway One & Two LP and ASR-Fountainview Place LP.
The move for reorganization is in response to foreclosure proceedings, instituted by creditors of debt secured by the subsidiaries’ assets—four real property assets.
The loans on the four assets were acquired in 2013 by a private equity firm which initiated foreclosure proceedings that would have eliminated the substantial equity in the properties and the ability of the subsidiaries to pay their vendors and other lien holders.
The chapter 11 proceeding stayed the attempt until an arrangement was reached to pay all creditors. During the proceedings, the company completed the sale of the property held by ASR-Fountainview Place and restructured the indebtedness secured by the assets of the other subsidiaries. Under the reorganization, all creditors (including vendors) will be paid in full.
Representatives for American Spectrum Realty were unable to offer a comment at deadline.