Opus South files Chapter 11 bankruptcy, to sell most company assets

By Caroline Salls

Pittsburgh, April 22 - Opus South Corp. and some of its subsidiaries filed for Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the District of Delaware amid plans to sell substantially all of the company's assets, according to a company news release.

Chief restructuring officer Anne Marie Solberg said in the release that the bankruptcy filings were made necessary by the continued deterioration in economic conditions in the commercial and residential real estate markets in the Southeast.

"While we began slowing the pace of new development nearly two years ago in anticipation of difficult market conditions, we must now take additional measures to enable an orderly wind down of our portfolio, protect asset values and maximize returns on lenders' investments," Solberg said in the release.

She said Opus South will maintain its operations in Atlanta and Tampa, Fla., to work on asset dispositions and transitions.

Bids for the company's assets are due by 5 p.m. ET on June 8. The company said it is accepting bids for all of the assets together or any package of assets.

Each of Opus' secured lenders will be deemed a qualified bidder for the assets.

The company has requested court approval to use cash collateral to maintain its properties throughout the sale process.

According to court documents, Opus South has between $50 million and $100 million in both assets and debt.

The company's largest unsecured creditor is the Sports Authority, based in Englewood, Colo., with a $1.32 million trade claim. Opus did not list any other unsecured creditors with claims of $1 million or more.

Opus is an Atlanta-based design-build development firm. Its Chapter 11 case number is 09-11390.

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