The release notes litigation documents claim Mortgages Ltd.defaulted on its funding obligations for the 275-unit CenterpointCondominiums at 110 E. Seventh St. in 2007 by failing tofund loan draws in full before funding finally ceased. In themeantime, Mortgages Ltd. filed for Chapter 11bankruptcy in June, following the suicide of founder andCEO Scott Coles.
A call to Richard Feldheim, president of Mortgages Ltd., was notreturned by deadline.
The Avenue Communities statement also notes that in fall 2008,Avenue Communities and Mortgages Ltd. struck a $75 million dealwhich was to have been curative of Mortgages Ltd.'s originalfunding breach. However, except for $2.8 million in financinggranted on September 2 through bankruptcy court, there has been nomoney forthcoming from the troubled lender. Furthermore, thestatement notes, hearings continue to be delayed.
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