Filing for Chapter 11 bankruptcy protects the developer from creditors while it regroups.
In a move to protect the company from creditors while it reorganizes itself, Eugene developer Arlie & Company filed for Chapter 11 bankruptcy.
While the developer has significant assets, it doesn’t have enough cash. Company head John Musumeci hopes Arlie’s reorganization will only take a few months.
“Five of our six banking partners have been willing to work with us on a restructuring plan,” Musumeci said Wednesday evening. “However, despite many discussions over the last several months, we have been unable to reach agreement with Umpqua Bank. Sadly, this is the only course of action left for us.”
Umpqua Bank is Arlie & Company’s biggest lender on Lane County properties and projects. Over the past eight months, the Oregon-based bank renegotiated company loans and lines of credit worth $11 million, county land records show.
Read the full story at The Register-Guard.
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