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SAN DIEGO—Tri-National Development Corp. reveals that it has filed a voluntary Chapter 11 bankruptcy petition in the San Diego Bankruptcy Court, citing debts of $33 million. According to the schedules, the current market value of Tri-National’s assets is approximately $86 million. However, its debts, both secured and unsecured, total about $33 million.

The reason for the filing is apparent from a reading of the schedules: Tri-National has valuable, unencumbered land but no cash with which to satisfy the claims of its creditors. Tri-National is a Wyoming corporation attempting to develop resort property in Baja. The properties are owned by several subsidiary Mexican corporations.

“It is my intention to reorganize Tri-National in the voluntary Chapter 11 case in quick order by marketing assets owned by Tri-National’s Mexican subsidiary corporations, up-streaming the sale proceeds and using the proceeds to pay creditors,” says Michael A. Sunstein, president and chief executive officer of Tri-National. “We intend to work closely with our creditors, and we expect to have a reorganization plan confirmed and begin distributions to creditors in six months or less.”

The reorganization will be facilitated primarily by Tri-National’s owned and debt-free subsidiary, Planificacion Desarollos S.A. de C.V., which owns 600 acres of land known as Hills of Bajamar. The project is 50 miles south of the US/Mexico border. Planificacion has options to purchase an additional 1,750 acres for $2,800 per acre.

“If left to creditors, Tri-National and its subsidiaries would be dismembered by a few creditors, to the great detriment of other creditors and the company’s shareholders,” says Colin W. Wied, an attorney representing Tri-National.

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