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Tuesday, January 8, 2013

Trump Tower project in Philly files Chapter 11

Per www.reuters.com:

Tue Jan 8, 2013 2:05pm EST

By Nick Brown

NEW YORK, Jan 8 (Reuters) - A Donald Trump-affiliated
company formed to construct a luxury hotel and condominium
complex in Philadelphia filed for bankruptcy late on Monday to
prevent foreclosure by its lender.

VTE Philadelphia LP, an entity that holds the vacant land on
the Delaware River slated to become Trump Tower PA, filed for
Chapter 11 in New York.

Its sole secured creditor, US Bank, had previously
received permission from a Pennsylvania state court to
foreclose, and a sheriff's sale had been scheduled for Tuesday
morning. VTE said it filed for bankruptcy to avert the auction
and find investors to salvage the project.

"The debtor believes that under the aegis of the bankruptcy
court, it will be able to restructure its business and prepare a
plan of reorganization," it said.

VTE was established in 2005 to construct what was designed
to be a 45-story luxury complex, initially slated to be
completed in 2009, according to the project's website.

But a downswing in the Philadelphia real estate market held
up development, VTE said in court papers.
The company listed assets and liabilities of about $11.5
million each. It said it owes US Bank about $17 million, and
estimated that its land is worth less than that.
The case is In re VTE Philadelphia LP, U.S. Bankruptcy
Court, Southern District of New York, No. 13-10058.