Aztec Fund Holding Inc. has filed for Chapter 11 bankruptcy protection in the Texas court, disclosing liabilities exceeding $100 million.
Company Background and Bankruptcy Filing
Headquartered in Mexico City, the Aztec Fund is a private equity firm specializing in U.S. commercial real estate. The company submitted its bankruptcy petition on Monday in the U.S. Bankruptcy Court for the Southern District of Texas.
Real Estate Transactions and Assets
Over the past six years, the Aztec Fund has been involved in real estate transactions totaling $600 million in the U.S., as indicated on its website. The fund’s initial venture, known as The Aztec Fund, was succeeded by another fund named OME, following successful performance, according to the company’s site.
Foreclosures and Financial Struggles
In its bankruptcy filing, the company reported assets ranging from $10 million to $50 million. This year, the firm has experienced a surge in foreclosures, including the loss of an office building in Irving, Texas, managed by its subsidiary, TAF Intellicenter LLC. This property was financed through a $202 million loan from Bank of America NA, which subsequently acquired the building for $10 in a foreclosure auction on May 7, according to Dallas County records.
Bank of America and Deed of Release
Additionally, Bank of America executed a deed of release on July 5 with several co-debtors, including TAF Pinnacle Park LLC, TAF Lakeside II LLC, OME Windward Oaks LLC, and five others. This agreement allowed the bank to reclaim multiple properties previously financed by the $202 million loan, as shown in public records.
Impact on Properties
This year, six properties owned by Aztec in the Dallas-Fort Worth region, covering 1 million square feet, have been foreclosed, as reported by WFAA. Two more properties in Alpharetta, Georgia, are also facing foreclosure, according to Bisnow.
Industry Context
The debtor did not respond to requests for comment on Tuesday. The U.S. commercial real estate sector has recently encountered a significant downturn following the COVID-19 pandemic.
Case Assignment and Representation
The case has been assigned to U.S. Bankruptcy Judge Chris Lopez. Aztec Fund is represented by John David Cornwell of Munsch Hardt Kopf & Harr PC.
Case Information
The case number for The Aztec Fund Holding Inc. is 24-90436, filed in the U.S. Bankruptcy Court for the Southern District of Texas
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