A Newport Beach investment group developing a major shopping center in Oceanside has filed for bankruptcy court protection from creditors' claims to forestall foreclosure sale of the multimillion-dollar property.
Blue Ravine Associates Inc., 4630 Campus Drive, filed the Chapter 11 bankruptcy reorganization petition Thursday in federal bankruptcy court in Santa Ana to halt last Friday's scheduled foreclosure sale of the Mission Marketplace center in Oceanside.
The investment group listed assets of $41.8 million and liabilities of $42.7 million.
Bruce Emard, attorney for the investor group, said Union Bank, the construction lender, had called in its $35-million loan when construction delays prevented completion of the center before the loan's due date. Efforts to negotiate a new loan failed, he said, and Union instituted foreclosure proceedings.
In addition to the Union Bank loan, Blue Ravine liabilities include mechanics liens by a number of subcontractors as well as several large unsecured loans to investors.