Thursday, February 9, 2012

Sacramento Real Estate Developer Files Chapter 7 Bankruptcy

Sacramento developer Sotiris Kolokotronis recently filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court in Sacramento after years of legal fights over a failed Elk Grove, California, housing complex. The bankruptcy petition lists Kolokotronis’ debts at $136 million with assets of $3.2 million.
The real estate developer is known for his midtown Sacramento condo project, L Street Lofts, which went into default and is currently being acquired by Southern California developer Bob Clippinger. The filing traces Kolokotronis’ bankruptcy mainly to his role in the planned — but never built —Sheldon Terrace housing project; three years ago, Kolokotronis defaulted on a $17 million loan for that project.
According to an article in The Sacramento Bee by Bob Shallit, a San Diego ‘vulture fund’, Gray1 CPB, had purchased that loan and, last year, obtained a judgment against the developer for $16.5 million. To collect, it attempted to foreclose on Kolokotronis’ majority interests in three other properties — the Fremont building, the Food Source supermarket and the Olympus Pointe cinema complex. Kolokotronis’ bankruptcy attorney said that his client had reached a settlement agreement with Gray1 last year, but that they had “reneged” on the deal.
Over the past 15 years, Kolokotronis has built many major real estate projects in Sacramento’s central city including Capitol Park Homes along Q Street and the mixed use apartment, restaurant and store complex at 19th and L Streets.
If you have been contemplating filing Chapter 7 or Chapter 13 personal bankruptcy due to a negative equity mortgage or overwhelming debt, contact the lawyers at Macey Bankruptcy Law. We are experienced and knowledgeable in all aspects of personal bankruptcy protection. Call us toll-free at 800-260-1402 six days a week and evenings to receive your initial free consultation or log onto our new site, www.maceybankruptcylaw.com for important and timely bankruptcy information. Call us today; we may be able to help.

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