Prominent Lakeland-Based Developer Files for Bankruptcy
Century Realty Funds seeks Chapter 11 protection for affiliated companies.
Larry Maxwell
Published: Friday, August 6, 2010 at 5:38 p.m.
Last Modified: Friday, August 6, 2010 at 5:38 p.m.
LAKELAND | A prominent Lakeland-based development firm has filed for Chapter 11 bankruptcy protection for its affiliated companies, saying a bad economy and inflexible banks are to blame.
Officials with Century Realty Funds filed the documents in Tampa earlier this week, seeking protection for the firm's Odyssey Properties affiliate and associated commercial real estate ventures. The affiliated companies owe investors and creditors more than $30 million, according to the documents. But company officials say the bankruptcy filings stem from more than $61 million in outstanding loans on commercial projects with BB&T and Wells Fargo banks.
"Both of those banks have refused to extend mortgages," said Ron Clark of Lakeland, lawyer for Century Realty, which is headed by businessman Larry Maxwell. "These are all keeper properties. They have value, they're cash-flowing, and they're properties we think will be good values into the future, but unfortunately these two lenders have refused to work with us."
Bob Madden, chief executive of Century affiliate Odyssey Diversified Properties, said occupancy and rental rates of commercial properties have been "significantly affected" by the recession. And ongoing trouble in credit markets has made it difficult to work out loan extensions with lenders, Madden said.
"The vast majority of our banks have been extremely cooperative and have renewed, restructured or extended our loans," Madden said in a prepared statement. But with BB&T and Wells Fargo refusing to negotiate, Odyssey wants to use Chapter 11 protection to reorganize and save its commercial properties from foreclosure, Madden said.
