Businessweek on the Security National bankruptcy
Security National Properties Funding III LLC, an affiliate of real-estate investment company Security National Master Holding Co., filed for bankruptcy protection from creditors who are owed as much as $500 million.
Security National filed a Chapter 11 case in Wilmington, Delaware, last night along with nine related companies. Security National said it had fewer than 1,000 creditors and fewer than $50 million in assets. The company didn’t provide details about why it filed. Chapter 11 of the U.S. Bankruptcy Code is typically used by companies that plan to keep operating while they reorganize.
“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,” Security National said in an e-mailed statement.
The company said it owns “approximately” 10 regional shopping centers and 21 multi-tenant office buildings in 15 states. The portfolio has “solid cash flows” Chad Christensen, the Security National’s senior vice president of real estate, said in the statement.