The Real Deal Miami

Unpaid bills leave developers vulnerable

October 19, 2009 01:56PM

Even the smallest creditors are now pressing claims against financially shaky developers, and are increasingly trying to force them into bankruptcy. Andrew Scott, the owner of a security consulting company in Boca Raton, recently joined other creditors in pursuing the $8,400 debt he said he was owed by the developer of a local office building, the Courthouse Commons. The project was also facing a $30 million foreclosure suit filed by Great Florida Bank, and instead of waiting in line, Scott’s group forced the developer into involuntary Chapter 11 bankruptcy. While it can be a good strategy for creditors desperate to recover some money, it also poses risks and can backfire, says Craig Kelley, the attorney for three of Courthouse Commons’s creditors. [GlobeSt]