Maryland Business Park Filing Bankruptcy Just Before Foreclosure
The plan was to put a new, modern business park at the site of East Baltimore’s old housing projects. That plan is somewhat in jeopardy as several of the park’s developing companies are filing chapter 7 bankruptcy.
The Baltimore Business Journal says “several” Maryland corporations, many of them with the same owner, filed Chapter 7 just one day before their property was to be foreclosed upon.
Each of the companies list less than $10 million in assets against almost $50 million in debts.
Known as Hollander 95, the park was to be a 51 acre development including 600,000 square feet of industrial work space. Developers said the new park would create 500 jobs when they purchased the property from the city for $4 million in 2004. The property was formerly the home of city housing projects, but those had been demolished.
The city of Baltimore is listed as a creditor. Most of the other creditors listed are contractors, including companies tied to associated with the HVAC, electrical and engineering work for the project.
While the project may continue in some form, it’s immediate future is uncertain. Before filing chapter 7, the group’s developers “defaulted on an $11.7 million loan,” the business journal reported.