One of the numerous companies under local businessman Rob Arkley's Security National umbrella today announced that it will be seeking releif under Chapter 11 bankruptcy. The press release is below:
Security National Properties Funding III, LLC is announcing that it is voluntarily seeking relief to restructure its bank financing under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
SNPF III and certain subsidiaries (collectively with SNPF III, the "Company") own approximately 10 regional shopping centers and 21 multi-tenant office buildings in 15 states. The Company has owned shopping centers and office buildings since 1993, with such properties having a current occupancy rate of approximately 80 percent. These subsidiaries have also filed for protection.
The Company intends to work with its creditors to emerge from bankruptcy as quickly as possible while executing a plan of reorganization that preserves the Company's operations.
All day-to-day operations and business of all of the Company's properties will continue as usual. The decision to pursue reorganization under Chapter 11 came after extensive efforts by the Company to restructure its existing debt outside of Chapter 11 with its existing lenders.
"Our portfolio is completely stable with above-market occupancy rates and solid cash flows," said Chad Christensen, Senior Vice President of Real Estate of the Company. "We hope to find consensual resolution that is beneficial to both the Company and its lenders."