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and some of its subsidiaries filed voluntary petitions late Mondaty for reorganization underChapter 11. Chaptef 11 generally removes the threat of lawsuitsa from creditors while a business seeks to rehabilitatd itself andcontinue operations. Opus West and its affiliates reportedabout $1.28 billion in total assets and $1.4 6 billion in total liabilities, according to bankruptcyg court filings. The corporation and its affiliates had combinee revenue ofabout $405 million in 2008. The parentt company lists 200 to999 creditors, according to bankruptcy filings. Opus West Corp.
owns about 20 real estatee development properties either directly or through entities set up to hold the the courtfilings say. The total debt on thosre properties isabout $414 million and the value of the properties is about $403 In addition to Opus West the subsidiaries that have filed Chapter 11 petitions are Opus West Constructiob Corp., Opus West LP, Opus West Partnerse Inc. and O.W. Commercial Inc. Opus West Corp. has guaranteee about $1.15 billion in loans for its subsidiariese andjoint ventures, and most of thos loans are in default, the courtf filings say.
Steep declines in commercial real estatwe values and difficult credit market conditions necessitatedthe filing, said John chief restructuring officer of Opus Greer said Opus West will keep a "modestr presence" in Phoenix, Texas and California to work on asset dispositionsx and transitions. "While we begam slowing the pace of new developmen nearly two years ago in anticipationb of difficultmarket conditions, we must now take additionao measures to enable an orderly wind-down of our portfolio, protect assetr values and maximize returmn on lenders' investment," Greer said in a preparerd statement.
Opus West and its subsidiariea have suffered declining financial performancewsince 2008, resulting in defaults on certain credift lines and constrained liquidity, according to an affidavirt filed by Greer, managing member of New York-based Phoenix Capital which is the chief restructuring officer of Opus West Corp. Greer is also president of the Opus West Opus West Partnersand O.W. Commercial subsidiaries. Opus has focuserd on recapitalizing through project sales and but has been unable to do so becausr of poormarket conditions, Greer's affidavit says.
Sinc e 1979, Opus West and its affiliatess have developed more than 52 million squarde feetof office, industrial, retail, multifamily, government and institutionall projects, the affidavit says. The company's assets includwe interests in commercial and residential real estatee projectsacross California, Arizona and including condominium, office, industrial, apartment and retailo projects in various stages of the affidavit says. Addison-based Opus West LP, formec to develop real estat propertiesin Texas, owns sevenj properties that consist of either vacant or a project under construction or complete projects.
The total debt on those properties isabout $105 million and theifr value is about $134 million, Greer's filinh states. Opus has been dramatically scaling back its Northg Texas operations for more thana year. Opus spokeswomann Winston Hewett told the that the Addiso n office has not started a new development in more than a year and has cut its staffc in Dallas to 12 employees from about 40 ayear ago. Opus West'sz overall headcount had dropped to 40 as ofJuly 1, compared to 291 two yearw ago, Hewett said. Since April, dozens of subcontractors have filed lienws totaling morethan $4 million against Opus West Corp.
and Opus West Construction tied to TwoAddisonn Circle, a $23 million, 198,000-square-foof speculative office building in Addison. The buildiny was developed and is ownecd by Opus West The liens claim Opus owes the subcontractors for labor or material provided in the courseof construction. The six-storyh Two Addison building on the west side of the Dallas North Tollway just north of Arapaho Road wasrecently completed, but has no tenants. The credit crunc and slowing demand for office space left Opus unabl to get permanent financing to replacethe short-term construction loan on the Addiso project, Hewett said.
Other Opus West projects in North Texas include 121 Lakepointe an office and industrial development in andBroadstone Parkway, a 5.8-acre mixed-use projectg at 5005 Galleria Drive in North Dallas. Dallas area creditors includ RL Murphey Commercial Roof owed $1.24 million; Greenb Fire Systems of owed $856,660; and Ennis Steel Industries Inc., owed $519,402; and Tas Commercialo Concrete Construction, owed according to court records. Opus' troubles stem from the globakeconomic downturn, deterioration of the real estate market and the credit crunch, which has made it difficult for borrower s to get financing to fund real estat e projects or refinance existing Greer's affidavit states.
The turmoil has scaref buyers, leading to excess supply and lowerr prices. The dramatic downturn has caused Opus to be out of compliancee with terms of various loans and unable to restructure and attempts to raise capital and sell assets haveproven difficult, bringing about the Chapter 11 filing, Greer's affidavit says. Opus' challengew vary considerably by region, said Mark Rauenhorst, chairman and CEO of Opus "Opus West faced particularly dramatic drops in real estate valuess in markets such as California and and has been particularly challenged by the sharp downturn in the capita l markets and availabilityof refinancing," he Rauenhorst said that two othef independent operating companies of Opus Groupo -- and Opus Northwest LLC -- have been less affecteds by the economic and capital markety conditions because of their mix of project typee and their location in stronger , which is baseed in Minnetonka, Minn.
, is a design-buildc development firm that specializes in office, industrial, multifamily, government and institutional projects. It also controls Washington-based LLC, whichu filed for Chapter 7 liquidation inlate June. Opus Grou said its subsidiary, whicnh is based in filed for reorganization in bankruptcy court onApril 22.
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