After a developer lost control of millions of dollars worth of property it was forced to file for Chapter 11 bankruptcy. Rland Properties, a shopping center developer, filed for protection in the Northern District of Texas in Fort Worth, listing assets between $10 and $93 million as well as liabilities between $5 and $27 million.

This comes after BBVA Compass Bank was forced to foreclose on Rland's shopping center located in Forth Worth last summer. That property, built just two years before, was later sold to another investor. According to a company official this is the first property that Rland has lost to foreclosure in the past sixteen years.

Kipp Whitman, president of Rland, attributes this foreclosure to the credit crunch and the increasing difficulty in obtaining new loans. However, he is hopeful that the company will reorganize completely and be out of bankruptcy protection in as little as four months.

If you're filing for Chapter 11, contact our law office to receive counsel from a Houston bankruptcy attorney.